All Forum Posts by: Luke M.

@Elizabeth Colegrove

 Thats what I was thinking.. Lets just see and just maybe this thing could work out. According the the podcast with @Brandon Turner on creative investing, 30% of homes are free and clear. I go look at 2 more and I should have a winner!! Then everything else just has work out!  ha 

I wanted to share my experience that happened just 5 minutes ago. 

I have driven by this 8 plex thousands of times. I always talked with my wife telling her that is the type of property I want. It looked distressed. The landscaping was once nice, now its  overgrown. The siding is beginning to need some help. The parking lot has weeds all over.. its screaming,"Luke buy me and bump that equity/rent/value up!!!!!"

I could just imagine the inside of this place. I was guessing completely outdated and needing some TLC. Thats exactly was I was wanting.

There was a newly placed very generic Property management sign .. So I had to make the call. I joined a showing with others people looking. 

I walked it and my dream came true, old green carpet duct taped where it was wearing through to the 60's  concrete underneath .We stood out in the hallway chatting with the landlords and a couple college kids that were there to see it also.. 

While standing there chatting I found out that they were  the owners. I also found out that they were not debt free on the 8 plex. They still had a mortgage on the property. Good info about the average cost of utilities and that builder that built the 8 plex,  had built 3 more exactly the same that where all on the same block. There was a lot more tidbits that I wouldn't have learned had I just looked the property up online. 

Anyways, it was a lot of info with little effort.. Not sure if its completely honest but it was good to get in and get some questions answered that have been killing me for awhile now.

I just bought a 2bd, adding a 3rd bedroom  to the basement. Bump up a litte equity and the rent.....

Hey guys and gals. 

I have just started out my journey into the RE world a year ago, I own 2 duplexes at the moment. I am in a pretty good position to keep the ball rolling. Biggest part, my wife is on board. 

I would love to just be able to chat with a fellow seasoned investor to bounce some ideas/questions off. I would consider myself semi aggressive. I am a independent flooring/shower tile contractor along with most hard surface floor coverings. Who grew up in the Asphalt industry. 13 years on a paving crew

 My plans are to be full time land lord by way of the Brrr plan and the 7 years to 1 million combined. 

The knowledge I lack I make up with hard work. I'm  sponge when it comes to listening.

Just had  a offer accepted on my first Brrr property. Beautiful property that needs a face life and a bedroom in the basement. 

Please respond or message me if you would like chat  

Looking at purchasing a duplex in the town i live in.. 

$190,000

4 bedroom 1 bath up 

3 bedroom 1 bath down 

both have laundry in each unit

new roof 08

nice double garage

everything else seems up to date.. 

Very clean place

asking they pay closing costs (as of now)

taxes $1940

insurance $371 

tenants pay all utilities.

20% down fixed 30 yr 5%

Only down  is rented now, $750 assuming  they got someone in there to help pay the mortgage.. 

very close to campus, downstairs lease will renew in may and rent will increase to $900 top will rent for $1200.. most bedrooms in town are rented at 350-375.

So i will have the risk of filling the top, but i plan to rent it cheaper $1000 until may but list in Jan to get the rent I think  it deserves.. 300-350 a room.. 

So as of right now its renting at $750 with the tenants paying all utilities....

Hopefully within a month or so of closing I would have it all rented for $1750.. Renew in May and it would be rented for $2100..

Obviously not cash flowing now.. 

I do have some bank role to ride out the top not being rented  for a while.. 

Thoughts?

suggestions?

Luke 

@Michael Evans Thanks for the great advice. I deal with a lot of different contractors and have been building a team and not really realizing that I was doing it.. I have a few go to guys from financing to plumbing. 

My goal is to own a few multifamily unit properties. I would love to be full time doing that. I would love to chat about details of financials and  objectives in a message if you wouldn't mind? 

Again I appreciate the advice 

So just to come out swinging, I did my first deal about 3 months ago. Bought a duplex for 56000,  that rents total for $1000 a month. Things have been going well thus far. 

My situation is i have some cash to play with (30,000) and a bit of equity (100,000). The cash is from a sale of a boat I owned and is going to be used for investing. It is not our personal checking ect. 

I am obviously very very new to this and want to make sure I do things correctly and keep building. I am currently a flooring contractor and to be honest if I could go full time land lord tomorrow I would do it.

Extremely long story made extremely short, had leukemia a couple times and a stem cell transplant and my body can't take the flooring thing to much longer. 

I am not sure what to do at this point. I really like e multifamily properties so far. I have looked at big apartment complexes (34) units. I just feel that is out of my league right now as far as know how. 

Our market is soo dried up as far as multifamily it's crazy. There is two on right now that I am looking at today.

I am learning about flipping and considering partnering with a friend and see how ones goes. 

At this point I am thinking I should just keep waiting for multifamily to come up and try to snag them if the numbers work and maybe try flipping. 

Thoughts or ideas on buying a large building? 

Any thoughts or advice would be greatly appreciated.  

ah forgot that. It's $23 a month.

Yea I was happy about the numbers for my first.

Thanks for the reply!

I won't be using property management for now.

Duplex

2bd 1b upstairs

1bd 1 b down

1000 month total rent

53,900 seller pays closing

20% down

Monthly................

vacancy 80

capex 100

insurance 35

P&I 272.80

repairs 50

water 35

PM 100

tax 75

New roof in 2011

Separate utilities

new water heaters and furnace 2011

aluminum siding

no gargage

cash flow 252.20

11.69 cap rate

opinions??

@David L.

That sounds pretty interesting.. I havent thought about trying it that way. I am going to mess with that a bit and see what the numbers look like..