All Forum Posts by: Natalie Allen

Investment Info:

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

Purchase price: $225,000
Cash invested: $15,000

3 - 2/1 apartments. LOTS OF EXTRA ROOMS WITH NO WINDOWS. Large outdoor space, back lot is over half an acre, we plan to build additional units in the back. Estimated ARV upon completion $365k.

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

We have had success brrrring other deals and this one had a ton of potential!

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

another investor who I've worked with new that this was exactly the deal I was looking for and he purchased it at an auction with me in mind. He financed the whole purchase price, closing costs & gave a $10k allowance for repairs. Oh and offered to push out the first payment 3 months. He gets to mark up the purchase price and he will get interest only payments until we refinance so it's a win win!

How did you finance this deal?

100% seller financing, then cash out refi with a broker

How did you add value to the deal?

New Flooring, New Water heaters, new paint, fixtures & updated cabinets, adding a wall to make an extra bedroom. Painted tile in areas that had two different types of tile.

What was the outcome?

Still in progress. One unit rented right away sec 8, the others are under construction but nearing completion.

Lessons learned? Challenges?

check water heaters prior to purchase. I somehow completely missed this on my check list and it was a HUGE expense. I've also learned to just do this work myself. It took twice as long for the contractor we hired to do the work and we ended up firing him anyway and doing it ourselves. On this one, it would have been better to diy since we've done it before. Sometimes diy is not the way to go but not the case on this deal.

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

Private Lender.

@Madison Gona Try a small local credit union that lends out their own money. Might be able to do a DSCR loan. I have 2 small loans like this and I used First Harrison Bank, tiny bank in my hometown that is know for working with investment property.

@Joe Splitrock. totally agree! I worked in childhood education & physical development for about 10 years before this so I have the same opinion about it! Thanks!!

Hi! I’ve been actively investing for a few years but my strategy needs to be adjusted as we welcome a new baby. This is exactly why I started investing and it’s paying off! I have a fee rentals for cash flow & a comfortable savings so I can be home & present with my new baby girl. However..... I have built up a really exciting momentum and am wondering how other women in this position remain engaged but in a more passive capacity? I already have property management in place for my rentals but would love to continue to buy over the next year if I can. Stay at home Mom’s or Dad’s who have a wife who is in this position, I’d love to hear from you. Good, bad & ugly. THANKS!

@Shania Mangum Yes please!!!

@Brandon Carlson Southern Indiana. Clark, Floyd & Harrison Counties

@Ben Martin Hey Ben! I’d love to connect.

@Kevin Schick HEY! I’d love to connect :). I’m a Southern Indiana local investor.

Seeking some sharp brain power to ‘think out loud’ with on a deal. I’ve come across this deal & the network I have local is mostly focused on residential & small multi-family, I don’t know anyone local YET who invests in this manner. Here are the details so far: -10 pads -Built in 1950 - Exempt/Grandfathered in for several things.... still getting tot he bottom of this. -6 Rented Spots Rented for a total of $2000 -1 spot is scheduled to have a new home placed ‘soon as it’s dry enough’ $350/mo -1 spot is the owners mother, free rent, will be moving her ‘at some point’ but “if she decides to stay then she will have to figure her own deal out with the new owner” per the owner. -2 vacant spots - Septic approved for 15 pads per owner (not verified yet) -23 acre lot!!!! Mostly wooded, about 5 acres cleared, non flood zone acres about 17. -1 acre lots nearby are selling for $50k - Homes across the street are $400k+ - Lot is inbetween 2 bigger towns. Our thought are to add the 5 additional pads (My husband owns a concrete company) and build Boat/Rv Storage on the cleared acres. Estimated at least 20-30 slots.... more if we clear out some of the lumber. $125 or more each slot bringing additional income of up to $2500-$3750. Current Rent Roll: $2000 (one owned home) Potential Rent for the existing pads: $3400 Potential Rent adding 5 pads: $5150 Potential Rent adding 5 pads & 20 storage spots: $7650 Current Expenses: $900/yr taxes ( I realize this will increase if improvements are made) $75 /mo trash $95 /mo gas $120 /mo water $150 /mo estimated lawn care This doesn’t count all of the other land on the property. What would a savvy long term investor be willing to pay for this property? Owner is very form in his price but before I reveal it, I’m curious what other think. What other questions should I ask? I’ve already talked to planning & zoning & have the health department permit numbers.... waiting on a return call. I know when the dates/deadlines are for board approval for additional expansion. Any other ideas on what COULD be done on land like this? I’m sure I haven’t thought of even a fraction of it’s potential! My goal is to pitch him seller financing as he’s wanting to retire this year & is open to it. Thanks all!!

I'm also curious how many 'mailings/cold calls' go out for 1 'closed deal'.  Mailings - Leads - Deal ratios people see in the midwest.