All Forum Posts by: Lucia Rushton

@Ryan Daulton I also saw your other post about how to find off market duplexes. Obviously wholesalers is a main way but 9 out of 10 times you will need to pay with cash or HM and probably won’t have an inspection or option period. You will be running this transaction on your own. So if this is your first one, it’s risky without the professional guidance of a seasoned investor friendly realtor in your market.

Best wishes.

And as always just my opinion and not written by Ai

@Shivani Kumar when you say multi family, how many doors is that? What is your budget? And how are you financing it?

@Jim K. Good on you ! That is a win for the books !!!

@Rakesh Battula you can pay for programs, pay for coaches, but if you are truly committed you can learn a lot online for free. And you can pay for all the coaching and programs and still not fully understand what steps you need to take and then take them successfully.

It’s not easy. AND unless you partner with a seasoned Real estate investor who has a SREO no lender with consider you. There are no free lunches in this sub-arena.

Best wishes. And as always just my opinion and not written by Ai.

@Katrina Dividina did you use a investor specialized Realtor ?

There are plenty of properties that have been modified and mostly without permits. I would check with the zoning and appraisal district asap. If it is not zoned for multifamily and the city has no plans to update that subdivision, you may want to chalk this up to an educational expense.

If you go forward with it, know that you are now informed and will operate under those conditions and risk.

As always, just my opinion, and not written by Ai

Quote from @Brian Adams:

@Austin Weber I just finished my DFW Duplex/Quadplex report if curious to see what folks are up to in the 2-4 family market up here!

I also did a quick underwriting on what you described and the building I assume you are talking about. As you say, it looks like pro forma rents are $1200/mo so you could push a little next year! 

The MLS rental listings for surrounding quadplexes all show the utilities as tenant responsibility, including water. That would make a major difference on the underwriting.

You didn't mention property management; are you going to manage it yourself? 

Assuming the repairs come of their current asking price and are ~$40,000, I did a quick underwriting and come up with a 5.7% levered IRR at a 10 year hold period and 6.5% interest rate.

But if the water are tenant paid, that jumps to a 10.8% levered IRR.

Either outcome is cash flow negative in Year 1, but that is not uncommon.

I think their price is probably pretty reasonable depending on the scope of repairs and deferred maintenance?

Your report is very nicely laid out! 

@Victor Olaniyi where are you located ?

 we love #exp

 Are you asking for Turnkey Cos to provide everything for you? Or are you looking for rentals that do not need much work? And hire your own PM and source the deals with a qualified Realtor?

All of our investor clients do not need a TK Company when we provide any resources from our team. And don't charge the crazy amounts a TK Company would. Just a thought.

As always, just my opinion, and not written by Ai.

 There are no low hanging fruit deals these days, you have to make things happen. Make sure the Realtor you are working with is an Investor specialized agent, not everyone is and they may not know how to be strategic and be a good negoiator. Also, deals are not just the property but also the financing, that plays a major role. 

As always, just my opinion and not written by Ai.