All Forum Posts by: Lauryn Meadows

Hey all! I have a question. I closed on a flip property last week in Flatwoods, KY. We did purchase title insurance at closing, and no liens on the property. I've called the city of Flatwoods utility to turn on water and they said there is a pass due balance of $1,612 and will not turn on the water until the bill is paid in full. The water company has not put a lien on the property. My RE agent went back to the seller for payment (they were in pre-foreclosure). They do not have the funds to pay for the bill. Has anyone every had a similar situation with utilities? It doesn't seem right to me that the water bill travels with the real estate rather than the person that the utility was under.

Thanks for any input!

I believe it's throuch American modern. It's 2 SFH, and 3 Duplexes.

I'm closing on 8 units this week. I had a insurance quote put together by my agent a few weeks ago. Now that closing is coming up I'm wanting to bind coverage and was told that in the state of OH I can't pay monthly, but rather pay double for 6 months and then not pay at all for 6 months and be covered for one year. Has anyone else heard of this?

Thank you all! I appreciate the feedback. 

Hello all! 

My husband and I are under contract to purchase a mix portfolio of 8 units for $250,000. The bank is only allowing us to do 80% LTC so they are financing $200,000 while we are doing owner financing on the down payment portion of $50,000. The appraisal hasn't been completed yet, but my educated guess is that it will appraise or >$310,000. There are two SFH, two duplexes on the same lot, and a SFH with a garage apartment. These are all significantly below fair market rent. Currently gross rent on all 8 units is $3500. Most of the units are in fair condition, but all could use some repairs and updating apart from one that needs quite a bit of work. Keeping the rentals in their current condition (compared to other rentals in similar condition) we can raise rent to a gross monthly rent of $4350. After we repair and update all the units I believe we can get a gross rent of $5550/ month (but that is going to take a year or two to gain capital to rehab each unit.)

All these tenants have been in these units for years, some as long as 30 years. I'm sure that some will not be able to pay the increased rent or will not qualify to rent under our company's guidelines. All tenants are currently on month to month leases. How would you approach raising rent on these exiting tenants? Would you do one at a time or send out notice to all at once. While we have some reserves starting out we don't want to vacate all of the units and not have any monthly income from them. Also, I'm fearful that once we raise rent tenants may further destroy the property.

This is our first buy and hold rental property, so any tips are greatly appreciated!

Christine, I hadn’t heard of Melissa Data. I’ll be sure to check into that. Thank you! 

Thanks for the insight Jay!

Has anyone used Foreclosure.com to get a preforclosure list? I think it’s backed by Bigger Pockets? I see most of the foreclosures on realtor.com/ Zillow or my agent sends them to me but I’m just not finding many deals. 

We did one flip last year and have put multiple offers in on different properties this month to get started on another. We are using all of our own capital so we are only able to do one at a time for this year but we are hoping to scale in 2019. My goal for this year is to flip 4 and create a good system to find deals to scale in 2019. 

I know mailers are popular, but where are you all getting your pre-foreclosure info from (list source/ foreclosure.com, etc.)? 

So my husband and I are closing on our first flip this week. (Yay!) We purchased that property from a local bank that I have a good relationship with. I just called them one day and asked if they had any REOs, they sent me some addresses and we made an offer on the house we flipped. These properties were not listed on the MLS.

Now that we are about to close on our current flip, we are ready to do another and potentially scale this year.

Does anyone have any luck building relationships with local banks to find deals? I’ve heard of people getting lists sent from local banks. 

Previously I worked as a pharmaceutical sales rep and I’m wondering if it will be a good strategy to uitilize those practices by cold calling the bank or stopping local banks to build rapport that way. 

I'm in a rural market and we do have some deals on the MLS, but not enough to rely on it.

I appreciate any feedback! 

Needing some guidance! I've been reaching out to agents to find small- medium sized multi family deals and haven't had any luck. Today, however, I contacted a commercial lending broker at a local bank and he's actually giving me the time of day (hallelujah!). He's asked me to send him my buying criteria via email.

My husband and I are interested in value add multis. With that being said, what's a good place to start on coming up with this guideline for our criteria? I know a reasonable cap rate in my area is 12%. Should I go off of the purchasing cap rate or the ARV projected returns?

Also he's asked about my budget. I explained that if the deal can make money, I have partners that may be interested. (By partners I mean family- maybe). Technically we only have about $30k cash, plus $100k in retirement funds that would wind up being much less than that if we used it to invest in real estate at this time. So $30k isn't much to invest in a multi family with traditional financing. How do I work my way around that question without sounding novice or unclear in my criteria? 

Any other tips on what I should include in this criteria? 

Thanks BP community! I always appreciate everyone's help on here. 😃