All Forum Posts by: Michael Balcom

Hey Nathan, great question. I become very interested in this a couple of months back and did a lot of digging on it. There is good money to be made here but zoning can be a huge roadblock. The more I looked into it, the more challenging it becomes. I think it is a great idea since the cost is so low but you will have hurdles. Something to also consider is making a self-storage facility out of shipping containers. Just food for thought. If you find out more and would like to partner on it, feel free to reach out! 

Hey Rashad! I had spoken with a great HM lender/brokerage a couple of days ago. His name is David Lewis and is with rapid funding. I will DM you his email.

Best of luck,

Michael 

Hey Marco! Congrats on your first investment property. No one knows section 8 better than Joseph Asamoah. He has tenants for 20+ years sometimes. He is the master at section 8. I would read his material as well as follow him on Instagram and listen to his podcast on BP. 

https://www.biggerpockets.com/blog/contributors/josephasamoah

All the best! 

 Thank you, John! I just read over my lease and you are correct. I will look into this further. 

I have a lease with three college students on it. Two of the three students paid this month, but the third said she could not since she lost her job due to COVID. My PM talked to her about a rent deferral program and she said yes. My PM wrote the agreement, sent it to her and she has yet to sign it. My PM has tried multiple times to get ahold of her with no luck. How would you handle this situation?  

Thank you and stay safe! 

Hello BP!

I hope wherever you are right now, you are having an amazing day! I am working on a deal and need a little help. This is my first deal since joining bigger pockets and study real estate like my life depended on it! Below you will see my calculations for a duplex in South Florida, concrete block, 3/2 on each side. This would be a buy and hold investment.

Here is a link to the report as well:

View report

I was texting with the seller yesterday (FSBO) and asked him the following questions:

1. What is each side rented for and for how long?

2. Do any repairs need to be done?

3. Why are you selling this property?

This was his response :

I looked up the tax records and he bought it in 2009 for 83k.

I am thinking of offering 190k cash or 215k with seller financing. Please let me know your thoughts on all of this. I am open to any and all suggestions!

Thank you,

Hello BP! 

I hope wherever you are right now, you are having an amazing day! I am working on a deal and need a little help. This is my first deal since joining bigger pockets and study real estate like my life depended on it! Below you will see my calculations for a duplex in South Florida, concrete block, 3/2 on each side. This would be a buy and hold investment. 

Here is a link to the report as well: 

View report

I was texting with the seller yesterday (FSBO) and asked him the following questions:

1. What is each side rented for and for how long?

2. Do any repairs need to be done?

3. Why are you selling this property?

This was his response :

I looked up the tax records and he bought it in 2009 for 83k.

I am thinking of offering 190k cash or 215k with seller financing. Please let me know your thoughts on all of this. I am open to any and all suggestions! 

Thank you,

Mike

@David Kohli you make some excellent points. The important thing to keep in mind is the repeat part of Brrrr. If you do not plan to repeat the process then just keep all your money in there and have great cash flow. However brrrr is just a leveraging tool to grow your portfolio exponentially.

The more times your money changes hands, the more money and better deals you can make. Think about velocity of money when doing this. If you won’t create any velocity then you are absolutely right.

Hope this helps and would love to discuss it further with your thoughts.

Cheers!

@Matthew Carroll the rental rates are around 1,700-2,000. At first, when I bought it, it was generating over 1% value in the rent. Now the market has increased so much, rental rates have not kept up.