All Forum Posts by: Monte Blunk

We are actively looking for a small to medium size MF units > 4 but less than 20 units in SLC, UT. OR people who want to partner on units like this in Salt lake city, UT. We are looking for properties that are add value properties not new construction. Looking mostly in the SLC area but willing to look outside this area for the right deal. Would love to connect with any commercial brokers that have properties in this category. We currently own and manage 3 duplexes in SLC , and 1 vk rental in Park City but are looking to break into bigger MF units. 

We are actively looking for a small to medium size MF units > 4 but less than 20 units in SLC, UT.  OR people who want to partner on units like this in Salt lake city, UT.  We are looking for properties that are add value properties not new construction.     Looking mostly in the SLC area but willing to look outside this area for the right deal.   Would love to connect with any commercial brokers that have properties in this category.  We currently own and manage 3 duplexes in SLC , and 1 vk rental in Park City but are looking to break into bigger MF units. 

Anyone have any recommendations of a handyman/subcontractor or someone who is looking for some extra rehab work in SLC, UT.  We have duplex in the Avenues that we are trying to rehab and get ready to rent and looking for some extra help to get it done.  We also have a flip coming up in Aug/Sept that we will be looking for extra help with as well.  

I have over 10 years experience in rehabs but I'm looking for additional experienced handymen/women so I can turnover the rehabs quicker to get them rented or sold.   Also willing to work with new investors that want experience in learning to do rehabs and have a strong work ethic and are dependable.   Would love any recommendations or to connect with anyone interested in rehab work. 

Hi Amy-  I saw your post and wanted to say Congratulations on the 4 plex.  Happy to answer any questions on vacation rentals.  As you know we have the one in PC and have been posting it on airbnb and vrbo for the past 4 years.  I'm not sure if I have much to offer in terms of Florida rentals but happy to answer any questions or just talk through our experience with it.  

Also we bought another duplex in the Avenues that we are rehabbing and adding beds/bath.  Would love to sit down and chat some time!  Feel free to reach out!  Ali ( & Monte ;) )

Hi -

IS this still available? Thanks

We have a lead from a real estate agent of a 7 plex that may be coming out in the near future. It is in a great area close to the University and the current owners are currently remodeling the entire building and currently have no renters in place.  They have owned it for at least 15 years.

Features:

Five: 3bed/1bath, two- 2 bed/1bath & 1 studio= possible rent $8975  (with new remodel)

Purchase price at 1.2M- what our relator thinks we should offer (it is currently off market)

ARV: 1.2 (no add value since it will be newly remodeled)

Monthly expenses using BP worksheet: $7658

Cash flow: $1316/month

NOI $72,141

CoC ROI 5.18%

Purchase cap rate: 6.01%

Some questions we have are:

1. We have only done traditional loans so we don't know how commercial loans work or what terms they usually have. 2. We usually like to buy add value properties so we can add equity into them right off the bat. This has no add value potential but does seem to have good cash return and feels like it would be low cost to maintain since it will be brand new. Not really sure how to think of this and worried that we can't really add equity. 3. How do MF > 5 units usually appreciate? Do they appreciate only on the NOI? Therefore if we go into it without being able to increase rental rates or decrease expenses for years is this not a great idea?
4. Would need 300K for 25% down:  we have great credit, a W-2 job and have $75-100K in cash but would need to find other ways to come up with the rest of the down payment.  We haven't had to do this before so would be interested in how other investors use creative financing when having to come up with this much down.  

@Ray Lai thank you so much for your help and your advice!  We started this process with the hopes of learning how to become true real estate investors, instead of just watching from the sidelines.  We started with a few simple posts and the responses from the BiggerPockets community was amazing.  Ray Lai was gracious enough to reach out to us and help us through our first direct mailing and has given us some great information on how to talk to potential sellers when they call and some direction when we have needed it.  With the support of Ray Lai and some of the people we have met through bigger pockets we have purchased an additional duplex and we can't wait to continue down this path to see what happens.  We appreciate all that this community and Ray Lai especially has been willing to teach us.  

@Harjeet Bhatti -  we have a loan at 3.5%. On our primary.   

If we use the HELOC to buy, rehab, rent and then refinance to pay back HELOC would that make a difference about your thoughts on the scenario?

My wife and I are (44 & 49 yo) have been looking into increasing our rental portfolio using the BRRRR method to help fund our retirement and hopefully help to gain financial independence from her W2 job. Over the years we have been taking the Dave Ramsey approach to try to pay everything off. UNTIL we read Rich Dad Poor Dad and started listening to the podcasts on bigger pockets and reading the forums. Here is a little bit about our situation-

We own 2 duplexes and 1 vacation/airbnb rental.  The duplexes both have + cash flow and once paid off could give us around $60K a year in cash flow.  Right now we have over $800/month from each duplex in cash flow.  The vacation rental doesn't currently cash flow more than $100/month but we are hoping for equity in appreciation since it is in a prime ski town.  One of the duplexes has around 250K of equity and the vacation rental has around 150K of equity.  Our primary home has around $500K of equity in it at this time.   We just purchased the 2nd duplex and are currently rehabbing one side to increase the equity in it.    We have been looking at options and are having a hard time figuring out which way to move forward.   

Should we cash out the first duplex at 70% so it would be around $150K and then put that into our own home so we have then take out a HELOC on our home which we think would allow us around $350-450K in funds to use from the HELOC depending on the amount of LTV ratio we can get.

IT seems like a good idea but I am a little nervous about the variability of HELOC's rates and wonder if it is just better to take out the $150K from the rental and then keep it in cash or something more liquid to use to buy properties with traditional loans and then have a lower amount in a HELOC from our primary home. What would be the advantage of putting the 150K in the HELOC that we would then have to pay interest on if we use it?

Any thoughts or advice from those with experience in the area would be greatly appreciated. 

@Eric Gardiner- I don't allow airbnb to adjust it because the rates they quote are so low compared to what we actually get during the winter.  I may allow it in the other months but don't want to do it during the winter.  But that is a good thought for the rest of

Our condo is in the Park Meadows area of Park city.  It is one of the racquet club condos.  We live in SLC so we thought we would just rent it out during the winter and use it in the summer when it wasn't rented.  However that happens to be a lot during the off season because we have not been smart about how we advertise it.   So our goal this year is to work on getting it rented as much as possible so it can actually make money,instead of just being happy with renters paying for the mortgage.