All Forum Posts by: Michael Giuffre

@Caleb Heimsoth. I’m a buy and hold investor in Durham as well. Currently managing 15 units myself - would you mind sharing the name/number of your property manager? I’m interested in starting to use one for some of my properties to allow me to scale.

@Josh R. I’ll be there! I also live in Wake Forest but invest in Durham, WF and Raleigh. Looking forward to meeting.

Investment Info:

Single-family residence buy & hold investment in Marietta.

Purchase price: $90,000
Cash invested: $18,800

Currently on market for $185,000 after investing $25,000 in cosmetic renovations and holding for over 2 years as a rental. Decided to sell all of our SFH to focus on multifamily properties.

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

It was a short sale at a very attractive price and allowed us to get into real estate investing (outside our AirBnB unit and house hack) for under $20,000 cash out of pocket in 2017.

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

MLS - made a full price offer after seeing it once. Buyer accepted and their lender approved.

How did you finance this deal?

20% down conventional fixed mortgage via Angel Oak Home Loans.

How did you add value to the deal?

Made minor improvements as tenants turned over but costly fixes ate up all expected cash flow. As such, after significant market appreciation we decided to renovate in May 2019 and list on the MLS at $185,000.

What was the outcome?

Pending potential sale on the MLS.

Lessons learned? Challenges?

1.) Ensure that your cash flow expectations take into account aging systems, and
2.) If investing for cash flow, multifamily properties tend to produce much greater cash flow and cushion.

@Chris Martin Thanks for sharing this article. Very pertinent to several of my rentals! Fingers crossed for ending the shutdown soon...

Adding my experience here in case it helps fellow Sec. 8 landlords: I recently completed a duplex rehab and placed Section 8 voucher holder tenants in both sides last week (January 10th/11th, so during the government shut down).  This was in Durham County, North Carolina so your mileage may vary, but I never received any indication that the process was hampered by the shutdown in the least.  It took me about 10 days to request and hold inspections, sign tenant leases, and execute HAP contracts with the Housing Authority.  Hopefully we don't get to the point where landlords aren't able to get new Section 8 leases executed with their local Housing Authority but my recent anecdotal evidence bodes well for us, at least for the time being.  My January rents for existing Section 8 tenants at other properties were also paid on time.

I called my Housing Authority to inquire about February rents as well, and they indicated that they will be paid according to normal procedures and timelines (i.e. 1st-5th of the month direct deposit), and that no additional information is available for March onward at this time.

Hope this helps calm some fears of a spectacular show of Section 8 chaos :)

Details on my somewhat unique situation:

1.) I purchased a single family home last week, using a conventional 30y fixed mortgage in my name only. I put 20% down.

2.) I intend to rent the property out to a tenant and it will cash flow (before maintenance and vacancy, but after PITI) about $650/mo.

3.) My lender knows my intent is to be a landlord, and I am paying a slightly higher interest rate on my loan since I am not occupying the property as my primary residence and instead am acquiring it as an investment.

4.) I have a partner that I plan to collect 50% of the down payment + closing costs from, and we will split all operating costs 50/50 and profit going forward. However, this has not yet been done - I would like to bring this partner on to split everything in the next 10 days.

5.) My primary concern is not to achieve reduced liability by using an LLC, but to figure out the easiest way to split all tax write-offs and income with my partner 50/50 without triggering a due on transfer clause with my lender.

Q: Since the title and mortgage are all in my name only, what is the easiest way to co-own the property 50/50 with a partner post-acquisition? I realize I could deed it to an LLC that is owned by both of us (which has it's due on sale clause risks) but is there any way for me to co-own (i.e. split) this property with my partner by simply using a partnership instead of an LLC? Or would contributing the property to a partnership also require deeding the property to the partnership?  I would like to avoid the due on sale clause risk if at all possible, but also share the depreciation/mortgage interest write-offs with my partner 50/50. Is there any way to do this?

Thanks in advance for any help!

Thanks @Alexander Felice!  Just sent you a colleague request. 

Thanks @Andrew Kerr!

Investor looking for an experienced realtor in Fayetteville, NC.  I'm an experienced investor with multiple buy and hold rentals in other markets, looking to expand into Fayetteville in the next 2 months.  I'm building a specific type of business and need someone with expert knowledge of the area to aid in quick market intel and purchases.  Thanks in advance for any recommendations!

Looking for recommendations for contractors in Fayetteville that can handle rehab work. Estimating deal flow of approximately 1 rehab every 2 months starting in March 2018. Looking for someone that has experience rehabbing kitchen, bath, flooring, trim, and handyman work to rent-ready standards. Thanks in advance for any leads!