All Forum Posts by: Mackenzie Grate

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $101,000
Cash invested: $11,000

Minor rehab (paint) , rented out quickly.

Eventually I refinished the attic but I did not do that to start.

What made you interested in investing in this type of deal?

It was my first project and it was small and manageable. This was a test run to see if I could do it.

How did you find this deal and how did you negotiate it?

MLS. I had a realtor back then.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

I cleaned it up, painted it and brought the rent up to market value.

What was the outcome?

It's been a great investment.

Lessons learned? Challenges?

1) Having a good property manager is key. You need a team, not a person.
2) All is well until turnover time. You need to inspect your properties more to ensure tenants are taking good care of them.
3) One bad tenant can destroy your cash flow for a year.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $287,500
Cash invested: $30,000

4-plex project. As tenants move out, I update each unit. :)

It's fully occupied currently and cash flowing :)

A couple of cap-ex projects coming soon though...

What made you interested in investing in this type of deal?

I wanted to get into multi-families and the numbers just worked.

How did you find this deal and how did you negotiate it?

MLS. It had fallen out of contract. It was heading into winter so the owner wanted to get rid of it before the "dip in prices." I made an offer, did the inspection and renegotiated it based on a couple of major expenses that popped up. (ie: the furnaces were as old as me, literally).

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

One tenant moved out right after I closed (which was unexpected) so I renovated it and rented it out for market value. I will do the same as the other tenants vacate.

What was the outcome?

So far, so good. It's a great property with great tenants!

Lessons learned? Challenges?

Replace oil heating immediately. It's SUPER expensive. Also control the thermostat yourself. I had tenants who were blasting the heat and then opening the windows. Yep, that hurt. lol.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Hire me!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $145,000
Cash invested: $30,000

This was a duplex that I partnered on. We renovated the bottom unit and once the top unit is vacant, we will renovate that one too. :)

What made you interested in investing in this type of deal?

This was my first partnership, and the purchase price was too good to pass up. The house was next door to one my client's owned so it just seemed like a perfect fit.

How did you find this deal and how did you negotiate it?

My client's passed on it. I made sure they didn't want it and then I negotiated it for myself. It was a bit risky because the moratorium was (and still is) in affect and although we negotiated for tenant free, we ended up getting it delivered with one tenant and one unit free for a little bit less.

How did you finance this deal?

Hard money loan.

How did you add value to the deal?

We renovated the bottom unit and re-rented it out for market rate.

What was the outcome?

Overall it worked out pretty well. We still need to renovate the top unit. That will add more value eventually.

Lessons learned? Challenges?

Be careful which tenants you inherit. We wanted it delivered tenant free, but the top unit ended up staying. They have been hit or miss on paying rent. Luckily the downstairs tenant is reliable and covers the costs. Once the moratorium ends, we will renovate the top and catch that one back up to market rate. :)

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Me! I'm an agent and I represented myself and my partner :)

I'm happy to tell you about a renovation during the pandemic and the challenges I faced due to the fact that only one contractor could work at a time. One of my contractors tried to get away with not finishing the job...not cool at all. Learned a lot.

Investment Info:

Single-family residence buy & hold investment in Kingston.

Purchase price: $114,000
Cash invested: $20,000

Another SFH, two blocks from the first one. A bit more work on the reno, but rented out for more because it was bigger and the market took off during the pandemic.

What made you interested in investing in this type of deal?

I knew the area. It was a great price. My first SFH was successful so I figured why not do it again?

How did you find this deal and how did you negotiate it?

MLS. Again, I ran the numbers and offered what I was comfortable. I always renegotiate after the inspection as well.

How did you finance this deal?

Conventional lending

How did you add value to the deal?

We gave cosmetic updates: paint, flooring, new appliances, and took out an awkward, non permitted bathroom downstairs.

What was the outcome?

Good. It rented out quick and has had the same tenants so far...

Lessons learned? Challenges?

Measure a refrigerator multiple times before ordering, lol. Also it was just challenging navigating the one person working at a time thing since Covid had just started.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Leslie Foti

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $101,000
Cash invested: $11,000

Minor rehab, rented out. Cash flows well. :)

What made you interested in investing in this type of deal?

It was my first one so I wanted to take on a manageable size project. Nothing major.

How did you find this deal and how did you negotiate it?

MLS. I ran my numbers and offered what I was comfortable offering. I needed to make sure I could pay for it myself each month if the tenant didn't pay.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Minor rehab, all cosmetic.

What was the outcome?

I was able to raise the rent significantly from what the previous landlord was charging. I've had steady tenants since.

Lessons learned? Challenges?

Make sure you select the right property management company. The first one I had was a guy starting his business. It was just him and it never developed into a fully fleshed out "business." So I ended up switching property managers to a company that was already well established after.

@Mallory Nogueras I also invest in Ulster County. I have a couple contacts for contractors. Not sure if you have completed your reno already or not. I'd love to connect though and just network. I have 3 investment properties in Kingston and I'm looking to continue to grow my portfolio this year. I'm on IG @mackofalltradesny if that is easier too. :) Hope your first investment is going well!

Does anyone have a cold calling script they would be willing to share? I'm new to this and shy, so I'm looking for a good script to follow in order to get my feet wet. Thanks in advance! I appreciate it!

Anyone know a tub reglazer in the Kingston area? I'll need someone probably in the next week or so... Thank you!

Yes! That would be awesome. Right now only in Kingston. I might consider expanding outside that in a bit. A plumber rec would be awesome seeing as though I will need on of this house that I am currently closing on. Thank you!