All Forum Posts by: Patrick McGrath

@Patrick Menefee

Im actually closing on a property in 2 weeks, because of the Covid-19 and a very detailed inspection report i was able to recieve a $21,000 price reduction. This will cover all of the repairs needed to get the property rent ready.

I am actively looking to expand my business this year and will be going even harder during this time of uncertainty.

@Michael Lowe

I win them over by finding, buying and completing a solid cash flowing deal!!

My friends and family were the same, now with 5 doors and 4 more closing soon they all are saying I knew you could do it.

Keep hustling and follow your dreams.

https://q13fox.com/2020/02/10/seattle-city-council-unanimously-votes-to-ban-evictions-in-winter/

Thoughts?

@Pete Storseth

I think you can find all you need here on BP for free. There are tons of podcast with great info and the forums have more information than you could consume.

Save your money, be persisant in looking for deals and when the right one come along you can jump on it.

Hope this helps. Good luck

@Jaysen Medhurst

Thank you! Got to have a good dusk mask if your going to be investing and rehabbing.

@Anthony Wick

I completely agree sitting down with the seller is the best! Thank you for kind words, greatly apprecaited.

This is my 3rd rental, first MF rental. I actually submitted a LOI to the same owner for his last property yesterday. A 4-plex that he agreed to seller finance to me for 60 months! It is right down the street from this one so i know the rent potential and exactly how to renovate to increase the property NOI.

I believe it is considered multifamily

Investment Info:

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

Purchase price: $204,000
Cash invested: $71,000
After refinance : $10,000

Triplex - 2 Bedroom 1 Bath Units + 4 Car Garage.

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

We were looking to expand into MF for the increased cash flow potential and ability to BRRRR the property.

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

Found the deal from a Craigslist ad the Seller with looking to liquidate a Portfolio of properties and this was one of them. Ended up talking with the seller over email over the course of 5 months as it did not sell. Seller agreed to meet me for coffee to see if we could make a deal happen. Discussed REI, Life and why he was divesting his rentals. After the meeting he agreed to sell us the property for $210k, it was listed for $249k at the time. After Inspection we were able to agree on $204,000 + $4,000 towards Closing.

How did you finance this deal?

We financed the deal with 25% down conventional financing. $61k total DP and Closing cost.

How did you add value to the deal?

We added value by Renovating (2) of the 3 units. (1) Unit was Vacant at closing and one of the tenants moved out a month after closing. We Completely renovation the kitchens, fresh coats of paint throughout, stainless steel appliances, new toilets, lighting, Ceiling fans in every room, removing the baseboard heat and adding individual room heaters. I built the Cabinet Doors and re-framed the existing cabinets to give them a more modern feel .Parging the basement walls and applying 2 coats of drylock. We added new garage doors to the 4 car garage, new gravel to the driveway and cleaned up the abandon cars, camper and trash.

What was the outcome?

We were able to increase the property ARV to between $290k-$310k. We were able to renovate and find new tenants for 2 of the 3 units, increasing the rents from (A) $750 , (B) $750 & (C) $650 to (A) $1,200 , (B) $880 and (C) $950. Giving us a total Gross rents of $3030 with PITI of $1250.

Lessons learned? Challenges?

We learned the power of relationships and getting in front of the seller to sell yourself and what you are trying to accomplish. After coffee the seller WANTED to sell us the property and give it new life.

Challenges - Dealing with inherited tenants and balance of raising rents and setting new rules and expectations without coming a crossed as the greedy landlord.

@Derrick E.

I actually just brought this up to a inherited tenant on monday. The look in his eyes and relief in his shoulders said it all. Going to write up an addendum to the lease for weekly payments every friday.

Glad other people are doing the same.