All Forum Posts by: Mahad Fahieh

Hey fellow BPers,
My business partner and I are looking for private money lenders for a property we are under contract with.  The property is located in Indianapolis and will be our 3rd in the area.  We are looking for $30k for 1 year and are offering a 10% return.  Attached are the figures associated with the deal.  Rent comps in the area are between $600-700 per month.  The rehab was quoted at $3500 and requires minor repairs and cleaning.  If you have any questions, please feel free to message me.  Thanks!

@Ana Coello I would just split it evenly at least in the beginning, even though it requires more work.  I would recommend that for a few reasons: 1) gives you time to gather data on what your average monthly utility costs are just in case they fluctuate (like mine) 2) while avoiding over or under charging the roommates.  I feel like it's fair to them and fair to me.  After that I would then decide whether you would want to include it into the rent.  I still decided not to include it in because I feel the lower rent rate is more attractive to prospective tenants then trying to advertise a higher rate that includes utilities.  

Investment Info:

Single-family residence buy & hold investment in Denver.

Purchase price: $265,000
Cash invested: $40,000

My first house hack deal. Bought in July of 2016 and added a roommate shortly after move in. Finished basement, moved additional roommate into the basement. Eventually moved out completely and rented the other remaining room out. All rooms are being leased separately. I'm cash-flowing approximately $1100 on this deal.

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

Great location at a reasonable price given Denver market with plenty of room and potential value to add (basement finish project).

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

On MLS through my realtor.

How did you finance this deal?

VA loan (conventional financing)

How did you add value to the deal?

Finished the basement (with full bathroom, bedroom and egress window). Also, redid flooring on the main floor.

What was the outcome?

Successful rental property that is now a dedicated rental.

Lessons learned? Challenges?

Many lessons learned haha. Get a lawyer to draft up a solid lease (strictly outlining responsibilities, fees, in case of damages, etc.) and consider doing a month to month or short term lease agreement. Hire legit contractors (preferably bigger firms). Find a good handyman/women before things break. Don't include utilities in rent cost. And many more.

We have found a property in the Indianapolis area (2405 Adams St) and are looking to close on it within a week.  We are seeking $32,000 for a fixed monthly return on investment.  Additionally, we've lined up a buyer for the property who has agreed to purchase the property for $50,000 AS-IS, with $5,000 down, and will be executing the minor rehab work needed for the property, which will be worth $70,000+ after the rehab.  

If you are interested in partnering up or would like more information please feel free to reach out.  Thanks!

Hey Todd!  Really interested in this property.  I'll email you.  Thanks!

Hey Tiffany!  Is the property available still?

Hey Jake is the property still available?

[email protected] Thanks!

Hey James,

Can you send me some more info on this place if it's still available?  Thanks!

Can you send me some more information on this: [email protected]

Thanks!