All Forum Posts by: MIlton Monzon

 Good Luck brother!  Hoping all the metrics work.  Im actually out of state military investor but would still love to connect and see how the Pittsfield Portfolio goes.

@Faaz Hafid

I am actually expanding to the MA market and under contract on a duplex in that same street.
Did you end up buying this property?  Let me know how your experience has been with tenants if you did.

Investment Info:

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

Purchase price: $270,000
Cash invested: $69,000

About 98% BRRRR with 5k left in the deal. Bought via wholesaler for 270k. Used a HML with 20% down approx 54k. Put in 15k and made rents market rent. 3 Month turnaround time. ARV came in at 375k with cash out of 281k (75%) entire down payment is recovered and most of rehab money. Time to repeat. Still cashflows after PITI with 9% rate.

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

Generational Wealth and BRRRR method with mult families.

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

Off market via wholesaler who ive done 3+ deals with.

How did you finance this deal?

Via HML PINNACLE FINANCE. No rehab in loan only purchase but was able to make the close without an interior appraisal. My usual RCN capital needed an interior inspection. CASH OUT REFI was with RCN capital at 75% of 375k.

How did you add value to the deal?

Updated and serviced old oil tanks and the deck. Increased rents to market rent.

What was the outcome?

Expected 325k ARV and thought I would leave money in the deal. Ended up with 375k ARV and pulled 98% of money invested out.

Lessons learned? Challenges?

Focus on increasing rents, making the curb appeal valuable, and mechanicals are huge.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

RCN capital and Pinnacle Financials HMLs.

Investment Info:

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

Purchase price: $196,080
Cash invested: $39,216

Negotiated and got seller to 196k from 220k. Not a big drop but big enough to meet the expected 70% ARV criteria needed for hard money. ARV expected based on appraiser was 290k. Currently remodeled one unit and all mechanicals are updated. ARV with updates made came out to 320k. 3 month turnaround new loan 240k. 100% BRRRR and extra cash flow at 9% rate. Big win here when all I expected was to barely break even.

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

Wanted to close another deal before the end of the year and had experience with BRRRRs on multifamilies.

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

FB marketplace seller posted at a higher amount. After a few months followed up and negotiated using inspection and appraisal report.

How did you finance this deal?

RCN Capital. HML.

How did you add value to the deal?

LVP flooring in all units, updated mechanicals (plumbing, heating, electrical), new roof, new windows where needed, new paint. Increased rent roll.

What was the outcome?

Expected ARV of 270-290 to break even. Pulled a 320k ARV. All invested money pulled out plus another 20k.

Lessons learned? Challenges?

New deck would have been nice and maybe added another 5-10k in arv but in reality mechanicals, roof, and unit appeal made a bigger impact.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Completely off market direct to seller who had bought from foreclosure. Used RCN capital as a HML. 12 month loan done in 3 months.

Investment Info:

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

Purchase price: $196,080
Cash invested: $39,216

Expanded our CT reach. Seller needed more room to breathe so I negotiated and got him to 196k from 220k. Not a big drop but big enough to meet the expected 70% ARV criteria needed for hard money. ARV expected based on appraiser was 290k. Currently remodeled one unit and all mechanicals are updated. Last repair made is the deck but city is making it hard with permitting. What should have been a 3 month cash out refi is now looking like a 6-9 month. Luckily HML is 12 months. Either way exit strategy is cash out refi at 75%, Refi at 80% (no cash out), or sell and net approx 70-100k (but hate capital gains). Will update when that decision comes around. **** UPDATE **** Did not to the deck remodel. ARV with updates made came out to 320k. 3 month turnaround new loan 240k. 100% BRRRR and extra cash flow at 9% rate. Big win here when all I expected was to barely break even.

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

Wanted to close another deal before the end of the year and had experience with BRRRRs on multifamilies.

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

FB marketplace seller posted at a higher amount. After a few months followed up and negotiated using inspection and appraisal report.

How did you finance this deal?

RCN Capital. HML.

How did you add value to the deal?

LVP flooring in all units, updated mechanicals (plumbing, heating, electrical), new roof, new windows where needed, new paint. Increased rent roll.

What was the outcome?

Expected ARV of 270-290 to break even. Pulled a 320k ARV. All invested money pulled out plus another 20k.

Lessons learned? Challenges?

New deck would have been nice and maybe added another 5-10k in arv but in reality mechanicals, roof, and unit appeal made a bigger impact.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Completely off market direct to seller who had bought from foreclosure. Used RCN capital as a HML. 12 month loan done in 3 months.

That is great. Just like the VA loan it is an amazing opportunity. I wonder if there is anything unique for a professional like yourself.

Investment Info:

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

Purchase price: $255,000

On Market duplex. Negotiated from 325k to 275k. Used inspection to bring down to 255k with 3% seller credit for closing cost. Used the Physician Loan. No PMI and 0 closing cost. Appraised 'as is' at 325k without updates. Looks a little beat up on one unit and all mechanicals are old. 60-80k in updates needed and after one year of living here will cash flow around 200$ as a full rental with a 8.4 rate. Will be able to pull almost all my invested money back out with ARV in the high 400s.

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

Moved back home post military service and promised myself I would buy wherever I move to.

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

MLS. Represented myself and negotiated with the seller and agent using the inspection and identified high ticket items (mechanicals, foundation, sewer line, etc)

How did you finance this deal?

Used the Physician Loan which is similar to the VA loan but fixed to either a single family or two family. Negotiated 3% seller credit so at closing received a check of 300$ back. Got paid 300$ to get this duplex in UTAH!

How did you add value to the deal?

"as is" appraised at 325k. 70k above purchase price. Putting in about 60-80k and modernizing it within the next two months. (financing all repairs using 0% rate credit cards and personal loans). Duplex in this area fixed up with these type of repairs are appraising above 400k. So whether rates drop or not in the next 12 months we will be able to pull out via refi or heloc all out money invested and have a modern duplex.

What was the outcome?

House Hack for year one with half our mortgage paid. After a year with our money pulled back out it will cashflow about 200$ a month or break even dependent on rates.

Lessons learned? Challenges?

Old home but majority of my portfolio is old homes that most people would shy away from. Luckily ive stretched to these genre of RE and 1800 homes dont scare me and have been key to our RE growth.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Used Huntington Bank. Amazing bank especially Bill. Specifically for Physicians looking to buy a primary and house hack into a duplex. This team was great.

 Thanks for reaching out.  I could do a 90 day refi next month however due to the city being so extra and strict on their permitting process i had to hire a structural engineer/ architect for a front deck.  that should have been done by now but the architect is booked and put be on the back of his list and realistically expect to have that deck completed early next year.  So that delays the rehab and the opportunity to increase the value per the appraisal.