Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Niles Emerick

Niles Emerick has started 7 posts and replied 15 times.

Hi Arron - I'll assume other terms are the same, loan term, fixed rates etc. Seems to me maximizing your cashflow will be important, so lower interest rate and higher points up front makes sense if you pay out of pocket. If you will finance the points into the loan then I'd consider the higher rate and lower points.

Post: Opportunity zones investment

Niles EmerickPosted
  • Investor
  • Singapore, Singapore
  • Posts 20
  • Votes 2

Following this thread. @Toby Khan I have been researching this a bit myself. There is a great podcast called Opportunity Zones Podcast I have found helpful. The nature of OZs is to be in neighborhoods that could benefit from increased investment. This has been an evolving space as the SEC and Congress have clarified how it will work over the last few years. There are a number of different funds available to invest in, of varying trustworthiness. But I agree with you the strategy is promising, especially with a 10yr hold period to take advantage of the reduced capital gain tax.

Post: Primary residence turned into Rental- Refinance options

Niles EmerickPosted
  • Investor
  • Singapore, Singapore
  • Posts 20
  • Votes 2

I have run into this situation as well. Some banks will do HELOCs on an investment property, ask around.

Post: New to Re investing and looking for creative solutions

Niles EmerickPosted
  • Investor
  • Singapore, Singapore
  • Posts 20
  • Votes 2

Talk to more lenders. Try local banks and credit unions. Work on selling yourself too. It can help to bring a deal and show your work, all your calculations and plan. It helps to know the bank's criteria for DTI, LTV, DSCR, etc. If cash flow is tight on the deal, offer to put $5k in an account at the bank to help offset any potential shortage. Good luck!

Post: Bought a house at a garage sale! 5x in 6years

Niles EmerickPosted
  • Investor
  • Singapore, Singapore
  • Posts 20
  • Votes 2

Investment Info:

Single-family residence other investment.

Purchase price: $315,000
Cash invested: $15,000

Driving for dollars deal. Had eyed this corner property for years, saw a garage sale taking place so stopped to talk with the owners. Offered to buy the house and came back later with an offer in hand. Found a partner to help with down payment and renovation costs. We did a light reno and added a 4th bedroom to juice rents. This is a 5-7year hold with a redevelopment exit pending new neighborhood plan paving the way for upcoming.

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

Strategic location for upcoming and lot size

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

Garage sale. Built relationship with the owners who were family of recently deceased former owners.

How did you finance this deal?

Private financing for renovation and 1yr hold, then refinancing conventional.

How did you add value to the deal?

Light renovation, added a bedroom. Following neighborhood planning process and will sell to developer with re-zoning.

What was the outcome?

Still holding.

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

Represented ourselves and wrote our own contracts.

Post: BRRRR Help With First Property

Niles EmerickPosted
  • Investor
  • Singapore, Singapore
  • Posts 20
  • Votes 2

Hey Noah, sounds like you're ready to make the plunge. There is a loan type called FHA 203(k) that allows you to include repair/renovation costs into your loan. It is a bit more leg work with bids and submitting to the bank for draws, but it is one approach. Banks in some markets won't provide a loan for under $50k, so check around with a few lenders before you get too far. It wouldn't hurt to find some private money for this deal. Hope that helps!

Post: Long-distance rental with creative strategy (First Deal)

Niles EmerickPosted
  • Investor
  • Singapore, Singapore
  • Posts 20
  • Votes 2

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,750
Cash invested: $1,800

Purchased this as my first rental as a long-distance investor because I couldn't afford in my local market. Interviewed a number of RE agents in several cities, and found one in Ft Wayne, IN who was hungry and willing to put in some effort.

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

Affordable market outside of my home market.

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

Local RE agent presented several options that met my criteria within a given price range. I pre-approved a tenant by posting on Craigslist for a 3BR/2BA house at a rental price point that I knew would cover a mortgage amount range. I pre-selected 3homes that met the same criteria for the listing I posted, then had my RE agent tour the pre-approved tenant to the 3 houses and pick the one I would buy. Tenant put deposit and first month's rent down, which I used to cover closing costs, signed leas

How did you finance this deal?

0% down non-owner occupied 30-yr loan, then used tenant deposit and 1st month rent for earnest money and closing costs.

How did you add value to the deal?

Matched a renter with a home for sale.

What was the outcome?

Successful purchase of the home with nominal out of pocket funds. Tenant took good care of the property because they played a role in "purchasing" the home.

Lessons learned? Challenges?

Long-distance management can be a challenge without a local property manager. Had to build my own "black book" of contacts from afar, and get creative on tenant turn-overs by incentivizing current tenant to host an "open house" for prospective tenants.

Post: Long-distance rental with creative strategy (First Deal)

Niles EmerickPosted
  • Investor
  • Singapore, Singapore
  • Posts 20
  • Votes 2

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,750
Cash invested: $1,800

Purchased this as my first rental as a long-distance investor because I couldn't afford in my local market. Interviewed a number of RE agents in several cities, and found one in Ft Wayne, IN who was hungry and willing to put in some effort. I pre-approved a tenant by posting on Craigslist for a 3BR/2BA house at a rental price point that I knew would cover a mortgage amount range. I pre-selected 3homes that met the same criteria for the listing I posted, then had my RE agent tour the pre-approved tenant to the 3 houses and pick the one I would buy. Tenant put deposit and first month's rent down, which I used to cover closing costs, signed lease was used to meet bank requirements, and total out of pocket was less than $2000. (Note this was a 0% non-owner occ loan, before financial crisis and lending changes).

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

Affordable market outside of my home market.

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

Local RE agent presented several options that met my criteria within a given price range.

How did you finance this deal?

0% down non-owner occupied 30-yr loan, then used tenant deposit and 1st month rent for earnest money and closing costs.

How did you add value to the deal?

Matched a renter with a home for sale.

What was the outcome?

Successful purchase of the home with nominal out of pocket funds. Tenant took good care of the property because they played a role in "purchasing" the home.

Lessons learned? Challenges?

Long-distance management can be a challenge without a local property manager. Had to build my own "black book" of contacts from afar, and get creative on tenant turn-overs by incentivizing current tenant to host an "open house" for prospective tenants.

Post: Industrial warehouse to hip loft-style rental

Niles EmerickPosted
  • Investor
  • Singapore, Singapore
  • Posts 20
  • Votes 2

Investment Info:

Other buy & hold investment in Denver.

Purchase price: $159,000
Cash invested: $50,000

Scouted area with favorable existing multi-family zoning on under-utilized lots. Found this small 1500sqft warehouse with 12' clear-height doors, open floor plan, open rafters and unique feel. Spent ~50,000 to add a more functional bathroom and full kitchen to convert the space to a more residential layout. Then lived there for 2yrs before turning to rental. Future plans to redevelop to multi-family or sell as developable.

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

Always wanted to live in a loft, but never wanted to pay HOA fees. This lot has favorable use-by-right zoning for multi-family or retail, and has ground level views to Denver skyline.

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

Driving a neighborhood, came across a sign in the yard for an agent who had not listed on MLS. Property looked overgrown and sad...so I called.

How did you finance this deal?

Private financing. Had a very hard time getting financing on this as I planned to live in it while I renovated. It was deemed not habitable by every lender I approached (even though it did have a bathroom and kitchen). Seller put me in touch with a personal contact of his who had lent him private money previously (HUGE asset as I have used him multiple times). Then used 401(k) loan for 20% downpayment required, and CC for rehab until I refinanced.

How did you add value to the deal?

Added new kitchen and bath, glass garage door to let light in, sealed cement floors, landscaping cleanup.

What was the outcome?

A nearly indestructible rental with cinderblock walls and cement floors, providing a flexible open floor-plan space that can be reconfigured by tenants as needed. It has been featured in local maker publications and is commented on by nearly everyone on its unique appeal.

Lessons learned? Challenges?

Financing some value add deals can be a challenge when the value add doesn't fit any standard "model."
Living through a full remodel without access to functioning kitchen and bathroom and kitchen is TOUGH (was a bachelor then too). Sealing cement floors is a toxic chemical heyday.
Discovered that I could then change the "use" with the city from industrial to residential. This provided a sizable reduction in annual property tax, cost $7 to file paperwork.

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

Jay Soneff at Jamis Companies

Post: Primary Residence to BRRR conversion

Niles EmerickPosted
  • Investor
  • Singapore, Singapore
  • Posts 20
  • Votes 2

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $350,000
Cash invested: $35,000

Bought as primary residence, converted a den to a 4th conforming bedroom, cosmetic updates, lived there for just over 2yrs, then rented to 4 roommates.

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

Low capital investment, simple conversion to "add" 4th bedroom, multi-family zoned lot, 150ft to light rail transit, across street from open space

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

MLS. Offered full price, negotiated down after inspection.

How did you finance this deal?

Primary Residence 80(1st) / 10(HELOC) / 10(down)

How did you add value to the deal?

Bedroom addition by adding a door to a den (already had egress and closet). Added back patio, new front and back door, painted interior, exposed original brick wall in living room. Homeowners insurance claim for new roof/gutters and exterior paint. Large attic still available for conversion to living space or 2nd unit.

What was the outcome?

Long-term hold cash-flowing property with multi-family upside.

Lessons learned? Challenges?

Initial tenants were all students, so I used a co-signer agreement for parents to protect against non-payment.

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

Have had good experience with USBank refinance on owner occupied loans and HELOCs in Denver market. Desktop approvals.