All Forum Posts by: Matthew Amabile

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $600,000
Cash invested: $75,000

6 UNIT value add by stabilizing. 3 non paying tenants and open permits that need to be closed by finishing work. Purchase price $600,000 with appraisal at purchase @ $1M

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

There was a ton of equity to be captured by solving problems

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

Pocket listing from an agent, negotiated direct with seller

How did you finance this deal?

hard $

How did you add value to the deal?

closing permits and stabilizing

What was the outcome?

$1.1M valuation

Lessons learned? Challenges?

Have the town involved (and an attorney) as soon as possible to sort through all issues with the property

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $160,000

duplex, fully occupied. valued at $220k less than 2 months later

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

cashflow, good deal

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

MLS, spoke with sellers agent

How did you finance this deal?

hard $, refinanced 2 months later

How did you add value to the deal?

Tenant management, rent increases

What was the outcome?

great cashflow, huge equity grab

Investment Info:

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

Purchase price: $140,000
Cash invested: $10,000

https://www.lehighvalleylive.com/warren-county/2021/11/how-a-24-year-old-went-from-1-pburg-home-makeover-to-a-thriving-apartment-business.html

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

Cashflow, partner deal

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

MLS, went in contract at asking and reduced pp $10k after realizing separate heat utility was wrongly reported on listing

How did you finance this deal?

hard $, refinanced 3 months later

How did you add value to the deal?

small cosmetic work done

What was the outcome?

great cashflow

Lessons learned? Challenges?

Do due diligence on purchases, get an inspection

Investment Info:

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

Purchase price: $264,000
Cash invested: $30,000

https://www.lehighvalleylive.com/warren-county/2021/11/how-a-24-year-old-went-from-1-pburg-home-makeover-to-a-thriving-apartment-business.html

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

to get my first property, bigger pockets, low down payment with FHA

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

foreclosure MLS, asking was $125k, i offered 155k and was declined. then the bank came back to me and accepted and I reduced the purchase price $15k.

How did you finance this deal?

FHA 203K

How did you add value to the deal?

full gut $120k rehab.

What was the outcome?

I live for free and cashflow around $1300 monthly. Once I move out it will cashflow $2400

Lessons learned? Challenges?

find good contractors. My rehab took 16 months. Luckily covid forebearance saved me from making payments. Stay on your contractors and manage your renovation projects. Set expectations and get the town involved early.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000
Cash invested: $10,000

BRRRR deal. Property appraised at 140k with 65k purchase price. Occupied SFR

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

The ability to pull my cash out immediately

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

MLS, called owner and convinced him to get out of contract with the current buyer and to go in contract with me

How did you finance this deal?

hard money, cash for down payment/closing costs

How did you add value to the deal?

new floors, new roof

What was the outcome?

140 valuation

Lessons learned? Challenges?

If you think you can get a deal, get it!

@Rashad Ellis I actually literally just finished this project.  Over a year of renovation because of multiple issues.  I had to find another contractor and terminate the one that I had.  I took alot of matters into my own hands to get the project finished.  Feel free to message me and Ill give you my phone number if you want to talk

Deal deep dive of what I currently have under contract - let me know what you think:
Side by side duplex in a C+ neighborhood in West Central Jersey. Each unit is a 3/1 in decent condition. It could use some paint and new floors on interior, but not needed and will rent quick when vacant.
Purchase price: $160,000

Appraised at: $200,000

Current rents: section 8 $2050 combined with leases up next march - will be increased to $2600 total minimum

Insurance: $1088 annual

Taxes: $4644 annual

Utilities split and tenants pay everything except for sewer and water - $50/ month

The house is in good condition but will need a roof within the next 5-10 years. Boilers and water heaters are new. I am buying this hard money with a 10% down lender and can refi within 30 days with the same lender.

FHA 203k Loan Question:

A bit of background: Last year I bought a 4 unit and used a Full 203K loan to do around $115k of work on the home. Needless to say, through FHA this was a pain with all of the guidelines, inspections draws, and of course there was a huge learning curve since this was my first deal.

Move to today and I am currently in contract on a 2 unit with an unfinished basement and am using an FHA loan to close on it. I am planning on finishing the basement - it really only needs tile, some cabinets, and some walls built around the water heaters for a utilities room. There is some other work that needs to be done and it all totals to around $20k. I was going to pay all of this out of pocket but I did some research and saw that with 203k streamline if you take a renovation loan under $15k you don't need a 203k consultant and/or FHA inspections. Does anyone have any experience with the 203k streamline with a reno loan under $15k? How easy was it to pull the money and get your work done?

@Keven Vanegas I will private message you!

Hi all! I am looking at an 18 unit portfolio that an investor is looking to sell me. This is comprised of three 4 units and one 6 unit. These properties are all in a class C+ area by the beach and hotels in Atlantic City, NJ. I know I am not getting a "fantastic deal" but I feel that closing on these properties will help propel my investing career forward. The seller has thousands of units but is looking to consolidate from a bunch of small multi-unit properties to larger apartment buildings. The purchase price that the seller wants is 1.5M but I will have to come up with 300k to close on the property, of which I only have access to around 100k, so the seller has agreed to increase the price to 1.75M and throw the extra $ in for seller concession and closing costs and he will write me a note with no exact payoff timeline.

The numbers for my property are below:

Total rents $16,000 / month

Monthly Insurance: $1000

Mortgage: $8593 - I was thinking of a possible interest only mortgage which would be $6000 monthly.

Taxes: $25258

I threw in 5% for vacancies, 5% for repairs/capex and 10% for property management but would be curious to see how the BP fam would assess this property. The majority of all utilities are paid by the tenants.

I currently only have one 4 unit at this time, but I think I can handle this with this investors guidance and a good property manager. I also plan to convert some of these units to airbnb which, in the frequented area of Atlantic City, could bring in around $2k-$2500 monthly per unit.

What do you think of this deal?