All Forum Posts by: Nick Macklin

ive seen huge variability in some of my insurance rates and seemingly for no reason. Which part of the premium caused increase?

For the properties I may deal with though I usually factor in 60-70 per month for insurance.  If it's a nicer home it will likely be a bit more.  I have a newer construction (2007) worth about 270k and that only costs me $1000 per year to insure.

Investment Info:

buy & hold investment.

Purchase price: $72,000
Cash invested: $2,000

Single family rental in a solidly B to B- area. Low crime rates in surrounding area.

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

Property was in great condition and rent numbers supported decent cashflow

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

Purchased through wholesaler who was asking 85k. ARV assessed at 105k by wholesaler and I independently pulled comps that supported that ARV. Fortunately for me the wholesaler hadn't been successful wholesaling it as quickly as he wanted. I let him know I was interested but the numbers didn't work for me at 85k. I got him down to 72k which worked for me since it was essentially turnkey (could use some minor updating but honestly it's fine the way it is in that neighborhood).

How did you finance this deal?

Financed most of it through private debt from a fellow real estate agent that I work with that just had a bunch of extra money sitting in the bank. Offered 10% interest only payments until refinanced and no points.

How did you add value to the deal?

The only thing I did was add a great renter!

What was the outcome?

I got a renter in there 1 month after close for $900/month and I'll start the conventional cashout refinance in about 1 month and should be cashed out of the short-term debt May 1st 2020. I'll update once that's done!

Lessons learned? Challenges?

Just be honest with people when the numbers don't work. If you show competence and have a decent track record many times a good wholesaler will prefer a quick sale at a lower sales price.

I'll vouch for Lillie!  She's got the right mindset to help out investors for sure. Speaking of which, I need 2 more properties ASAP Lillie. Message me if you have any deals in the pipeline!

Hey Jake! Hope all is well. I'm not 100% positive but I think this is more of an HOA thing versus a municipality or a state thing. I'm assuming you are talking about buying and leasing to friends/associates etc to house hack. If you are talking about renting from someone else many leases restrict the number to 3 unrelated individuals. Hope this helps!

I've had a hard time finding lawyers that were willing to do Sub tos in MD so if you find one please pass me their info!  Most sellers have a hard time understanding subject tos so it's really in the pitch. Know the ins and outs and simplify it so they can understand easily. Best of luck!

Feel free to message me and I can hook you up with a few recommendations

Yeah I couldn't agree more!  It even seems like a lot of lenders say they can do it but underwriters are on a different page. I ended up having to just do a traditional cashout refi because by the time I found a solid lender the time frame didn't make sense for the higher interest rate. I close January 20 and then on to the next deal!

I haven't personally encountered any issues yet but I was reading some stories of people that have gotten ripped off by contractors and began to wonder how some of you protect yourself from unethical contractors?  This is especially important when you are an out of state investor like me and so many of you.  While I was reading the stories of people putting the initial payment down and contractors essentially asking for more right away after doing nothing and/or just walking away with a large chunk of capital.  

I have pretty much only signed the estimate and then come to some kind of agreement on the draw structure.  Should I be doing more?  I've only used 2 contractors and I have had good experiences with both even though 1 was far too expensive.

I'll be in Indi this week and was hoping to scope the area out and see some residential multifamily properties.  Does anyone have a good agent they would like to recommend?

I'll mainly be looking for properties that need some work so I may as well get some recommendations for contractors as well!