All Forum Posts by: Marylin OShea

Welcome! I am a fellow Annapolitan, and a licensed agent. If you want to run any scenarios past me, feel free, I'll be happy to share some wisdom. Or just post on the BP forums and you'll find great help there too. 

Continue to read, study, analyze,... you'll be ready in no time!

I wish I had found BP when I was 24... I started just 3 years ago. The best time to begin is always now!

Amazing, @Casey Roloff I'm hoping time will play in my favor too for a 13-unit property I've set my eyes ons. I just need a bit more time to save up the cash I need for the downpayment!! Please keep us posted with regular updates.

Thanks a lot @Ned Carey. I'll start by reaching out to Tom. 

Best,

M

Hi everyone,

I've stumbled upon this deal that is not yet listed, consists of two converted buildings in a small town, 6 + 7 units on half an acre. I learned about it from the owner who is a fellow real estate agent and she's "done with it". Said she is too old and doesn't want the hassle, though she recently hired a new property manager she likes. Her now deceased husband was running their portfolio, he passed 6 years ago and she's been working on getting rid of all their properties since.

She sent me an older appraisal that got me started, shared the income & expense figures. I ran the numbers, see below - the expenses are almost too low, so first thing will be to do my due diligence.

On the plus side she is not in a rush, the property won't be listed for a while (if at all, if I can get in quickly with a solid offer).

Purchase price (est) $775,000

Units 13

Annual income $112,000 (assuming 7% vacancy, all units currently leased)

Operating expenses $39,000 (all electric on separate meters, heat is electric. Owners pays for water, sewer, etc. Includes 10% property management)

CapEx $6,500 (or $500 per unit) << is this too low?

Mortgage $54,000

NOI $73,000

Expense ratio 35%

Cap rate 9.41%

CCR 6.50%

DSCR 1.36

This is before seeing the property, but it seems to be C class in a B area, so opportunity for expandability with rents. I was told there is some deferred maintenance, but I'll know specifics when I see the place. Not sure if this may break the deal or not.

I expect to run the management once I get the hang of it, for now happy to pay for the continuity of property management while I "figure it out" and eventually scale back the W2 job.

Am I forgetting anything? 

Now this assumes 25% down at 8.50%. This would be my first commercial deal. I have no idea if my bank will qualify me, but I will try! I'm guessing if they turn me down 8.50% is too low for the hard money lender route... I have W2 & 1099 income, solid credit, home equity and brokerage accounts/retirement savings, and some limited rental history (my first deal is a SFH 2 years ago).

I've read about doing 75% bank / 10% second with seller, and "just" coming up with 15%. Anyone had success doing this?

Thanks in advance!

This story is long overdue, but at the same time I think the 2-year history gives it a bit more legs too!

It started with an ambitious goal, real estate investment with a purpose (see old post here: https://www.biggerpockets.com/forums/61/topics/411...) and now, two years later, I am proud to say that there is a family living a little bit better, and I am above break even... What price do you put on improving people's lives?

You can read the complete story in my first blog post on BP:

https://www.biggerpockets.com/forums/61/topics/411...

Would love to hear other stories like mine, please share!

This is my update, 2-years in, hope you enjoy it! thanks for the kind words once again, @Robin Watson, @Mark Holencik and @Bill Manassero

https://www.biggerpockets.com/member-blogs/11976/8...

Welcome to the BP community! I know what you mean, I still have a part-time W2 in addition to being a real estate agent full time. Let's just say I am about to make a big choice in my career, and it's a little scary.

I just wanted to highlight the possibility of "moonlighting" fora few years; in other words, a W2 job doesn't stop you from getting your feet wet with REI...

The most important aspect many new investors overlook is knowing their WHY. What will get you out of bed at the crack of dawn, and make you push through the hard days? 

Once you've got that down, nothing will stop you. 

I just wrote my first BP blog post on how I stumbled into real estate investing. I hope it helps you? https://www.biggerpockets.com/member-blogs/11976/8...

Good luck to you @Cameron Rockey!

@Ned Carey I hope you're doing well! 

I realized I'm resurrecting an old thread here, but can you recommend a real estate attorney in Maryland who is well versed with seller financing? I'm trying to put something together and need someone on my side of the table to assist/guide. Cheers!

PS - still using the CPA you recommended, thank you.

@Zion Greenfield, I hope you return to post an update! I'm looking into seller financing for a deal and I'm anxious to read more success stories. 

All the best from Annapolis, MD,

Maryline

I agree with the points made by @Braden Smith. In my case, I got my license in between jobs, I figured it'd help me as an investor and I had the time to do it (2 weeks of online classes, another week to take the proctored exam + the state exam for MD), and then selling real estate became the new job because I really enjoy it.

That being said, if selling real estate is not for you (not even "on the side"), the license in itself for 1 transaction here or there won't do much for you. However the opportunity to affiliate with a brokerage and learn from successful agents will teach you a LOT about negotiating deals, avoiding pitfalls, etc. All of that could be really helpful for your future deals. 

There are things I've learned "by doing" as a real estate agent that I would have never learned by reading online forums or watching YT videos. Every transaction is so unique!