All Forum Posts by: Mwazomela Thurmond

@Jack Seiden I'm definitely curious what the data is for each quadrant, I'm sure it's not the same percent depending on if it's NW, NE, SW, or SE. Single Family tend to hold steady. Why do you think this shift has occurred in an area with more rentals, tourism, government, and military than the rest of the country?

Quote from @Nicholas L.:

@Mwazomela Thurmond

can you post more comprehensive information?

Estimated Rent assuming issues fixed: $1,900
Asking Price: $280k
Comps suggest: $240k to $250 
Estimated Reno to get close to asking: $40-50k

The bathroom, driveway, and stairs would need to be redone. It might need painting and exterior upgrades to get curb appeal that renters would want (sod and adding gravel to driveway)
Its 10 minutes from tons of shopping and can be upgraded to get it up to estimated value within 3-6 months.

Let me know if there's anything else you'd like me to include. 

If you had to start your real estate investing career off from scratch, with owning just your primary residence, what steps would you take to go from zero to 10 investment properties in today's market?

Let me know if you'd pick house hacking, BRRR, Fix & Flip, or even use a HELOC with today's interest rates and please tell me why.

Quote from @Jay Hurst:

Quote from @Benjamin Nelson:

Im currently in the process of buying a 4 unit house with a heloc on my personally house. The heloc is a fixed rate however interest only for the first 5 years unless I choose to make additional principal payments. If my intention is to keep buying multifamilies would you guys intentionally pay down the heloc as fast as possible to keep open for the next multifamily deal? Whats the best strategy to keep the snowball moving. Currently the 4 plex is all rented with long term tenants rents are much lower than what they should be the numbers still work for the deal. 

 @Benjamin Nelson   The best way to snowball is stabilize the property by raising the rents (if they are under rented right now). This will in turn increase the value.  Then refinance the line of credit with a 30 year fixed long term debt paying back the line of credit so you can do it again. 

I agree with Jay, stability in your first deal which is a wonderful accomplishment is key. You may need to update the property to get more rental income with minimal touch ups like paint or update the curb appeal, I'm definitely not talking full renovations but it will help justify the increase. 
After you're at market rent, you can start getting ready to find the next great deal and talking to lenders.

An agent with MLS access can pull tax records and owner mailing addresses from Remine, Realist, or other MLS products. The county can also do that but it might take longer.

Phone numbers can be found a number or ways along with public emails, Yellow Pages Online, Property Radar, Redx, Vulcan7, Mojo, Cole Resource, and so much more. 

A title company can pull the chain of title so you can learn who owned it, or you can reach out to an attorney for an abstract of title, a summary of who's had it to see if it's marketable.

You can also use a service like CLUE to see if any insurance claims were filed in the home and if insurance covered those claims, they did the repairs or left the issues unrepaired. 

I can see why the seller would need this, but I have to say that the interest rate of 7% is more than I'd prefer. If you went for a conventional loan, not only would you have a loan to cover the appraised value and title insurance, it could save your profit margins if you end up paying what their asking because you can refinance at a lower rate when interest rates come down. 

How did you determine which market you'd serve? 

I went to preview a property and the asking price was more than expected. The stairs need to be completely redone and it's not possible to do a electric chair lift. It has a 1st floor primary bedroom and a owner's bathroom that needs to be gutted. And landscaping needs attention. The rent from that home because it's within 10 minutes to downtown would work in about 4 years or so but the profit margin now so low if I offered anywhere close to asking, I'd be loosing money. 

Would you buy this home as a Fix and Flip or BRRR or keep looking and why?