All Forum Posts by: Nolan M.

We just closed on our first buy and hold property this week. The existing tenants have informed me that they plan on moving out at the end of February. Would it be too soon to put up a sign or a CL ad? What has been your experience? 

Hi folks, I'm a new member from Mesa AZ. My wife and I just closed on our first rental house and we are looking for more. Our goal is to have 15 rental houses within 10 years, which is when I can retire from my government job and take a pension. Regarding BP, its absolutely the most comprehensive REI website out there, it's just great!

Thanks Waylon, I'll give him call tomorrow and let him know you sent me!

Hi folks! I'm hoping someone can recommend a good insurance broker here in AZ. I called my State Farm agent and asked for a quote on a 4plex I'm looking at and haven't heard back for 5 days, even after 2 follow up calls, its unreal! Any help is appreciated! Thank you!

Curious if you used a hard money lender, and if so what were the terms?

I really need some advise here. I'm brand new and have found my first deal. Its a 4plex, seller is asking 150k and 20% down and offering to carry it at 4% for 30 years which would make my P&I about $575. It seems like a great deal but when he sent me the purchase agreement I found out he still has a mortgage on the property so this will be a wrap around. When I asked him about it he said he has 20 years left on a variable rate mortgage, and his current payment is around $895! I understand a wrap around could be a good exit strategy, but it looks like he'll be out at least $320 every month, it doesn't make sense.  

The seller does not appear to be an experienced RE investor, and when I asked him how I could be guaranteed that he would continue to pay his mortgage he said he wasn't sure. I don't think its any kind of a scam, he said he's just done being an out of state landlord. Obviously my concern is that if life throws him a curve ball and he can't pay his mortgage, I'd be screwed. 

Thank you in advance for your help!

@Brent Coombs, Thank you! We have agreed at 6% at a 15 year term, but I hope to be able to re-finance the 30k with a bank or private lender soon so I can find another deal!  Not sure I'll be able to get the same interest rate, but I think it will be more important to have the cash to buy another one.

@Steve Vaughan, thanks for the tip, I wouldn't have known anything about that!

After a few months of looking I've got my first deal in the works. Unfortunately its 1 1/2 hours away, but its 100k less than similar properties here in the Mesa/Phx area. I figure I can manage it in the beginning and then hopefully find a competent property manager that doesn't charge too much if i need to. Its a 4plex built in 1980, all 2/1, currently 100% rented at $500 each. I'm borrowing 30k from a family member for a down payment and the owner is financing 120k at 4%, 30 year term. Landlord only pays for trash, which is about $50/month, all other utilities are individually metered. One issue that the owner has brought up is that sometimes he has trouble filling the 4th unit, but said that is primarily because his daughter, who manages it for him, isn't always diligent about advertising it. 

So the primary mortgage will be $575, I'll be paying $250 to my family member, and trash, tax/ins will be about $200 for a total of $1025. I think worst case scenario I'll be out 30% for vacancy, CapX, and management which still leaves $375 cash flow. 

Any advise and insight would be great, thanks!

Hi all! I'm new to REI and am looking to use the BRRR method to buy and hold. Its tough to find deals here in the PHX/Mesa area as prices are climbing and I don't have a lot to invest. I'm looking at home prices in Globe Arizona and it seems like cash flow would be much higher in that market, and its only an hour away from me. I'm wondering if anyone owns rental property there, and if anyone is familiar with the rental market. If anyone has reliable connections I would be interested in working with a realtor/property manager in that town as well. Thank you!