All Forum Posts by: Owen Dashner

I hit about 20 houses while working full time with young kids before I started to really do myself a disservice by self-managing.  I think 15 as a side hustle is about the right number before performance and turnaround start to slip. This is assuming a full-time job, family, etc.  With less competing time obligations, you can manage more just fine.

I would buy that deal, for sure.

@Erik Bottema, I do. I flip, wholetail and also hold 50+ units there. Reach out on DM if you want to talk or have questions.

Investment Info:

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

Purchase price: $155,000
Cash invested: $12,000

This is a BRRRR 1990's duplex in Council Bluffs, Iowa that we picked up for a good price along with another duplex. We remodeled one side and did some outside work and raised rents $350. It appraised for $200K, and we did an 85% LTV cash out refi to recoup all of our initial cash and it still cashflows well.

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

I love small, value add multifamily. $0 into the deal and it cashflows well and we have some equity. Infinite returns.

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

A local investor was selling off some of his properties. I got referred to him by a friend, we ended up getting a good deal because we bought 2 of them for cash.

How did you finance this deal?

We used a line of credit for the purchase, cash for the remodel, and refinanced into a commercial note.

How did you add value to the deal?

Kitchen remodel (granite, new backsplash, painted cabinets), new LVP and paint throughout, new fixtures, lighting and vanity, stained the deck.

What was the outcome?

Successful BRRRR with $550 cashflow per month after expenses, all of our money out and 15% equity in the deal.

Lessons learned? Challenges?

Always tell people what you do and what you are looking for. I did not know the investor that we bought this from, but my friend knew I was looking for properties like this and introduced us.

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

Dan Palmquist, President of American Interstate Bank for the BRRRR.

@Nadir M. I have an Omaha real estate photographer to refer you to. She has a Matterport camera that takes great photos. I have used her dozens of times and have known her for over 20 years. Shoot me a DM and I will connect you.

As others have mentioned above, I would for sure FHA house hack by buying a 2-4 unit property if I was your age. Then, rinse and repeat.

What city or cities are you looking for an agent in?  You need to narrow down your criteria more so that people understand what markets you are looking in.

I have bought a lot of multifamily deals off market. Direct mail works, but it can take time.  Calling the owner will get you the quickest answer.  My advice would be to be direct - introduce yourself, tell the owner you like the property and ask if he/she might be interested in getting an offer for it.  It's all about timing. Everyone is a seller eventually.  Just follow up over time so that you are top of mind when the owner eventually decides to sell.  But don't get discouraged if this one owner won't sell this one property to you - you will need to widen your search and identify more potential properties to buy.

Wholetailing is my favorite disposition of all, and it is one of the best to use in a hot market.  Retail flips are time consuming, a PITA to coordinate multiple contractors, you have to go to the property a bunch of times, and there is a lot more risk involved.  I would much rather sell as-is on a wholetail than do a flip, unless the profit margin makes a compelling case to do the work to the property.

Sometimes we get smoking deals on properties because they have a material defect that the seller doesn't know how to fix or can't afford (foundation issues, black mold, hoarding, etc.). We will typically fix the material defect, clean it out and clean it really well, then list it as-is.  There can be big margins in those types of deals.

When there becomes a lot more supply on the market and buyers can afford to be more picky, that's when retail flips make more sense.

My local market in Omaha is similar to the comments above - the desirable areas and homes are still selling over asking with multiple offers right away.  Homes that are in fringy areas are sitting a bit and offers are coming in under asking price.  This could be a bit seasonal too - back to school time always slows down compared to spring/summer months.  It will likely cool down a little more as we get closer to the holidays.