All Forum Posts by: Patrick McGrath

@Jevon W.

MD investor - 2 SFR in AACO currently live in Westminster. Looking to close on MF here is the next 60 Days.

@Blake Garcia

Looks great!

@Whitney Moses

After 12 months you can get another FHA owner occupied loan. Just need to move into 1 of the units on the new property. It's called house hacking, good luck and keep growing.

Property #1 Is 3 units 2br/1b $210k

AVR is $250-$260k

Property #2-3 are 2br/1b duplexs $140each

AVR is $160k each

All units are currently leased, the plan would be to rehab the units as they turnover and use the cash flow for the rehabs. This will provide less out of pocket cash with a goal of refi in 2 years to pull out some of the capital tied up.

This will get me to the roughly 20% COC. At purchase it will be around 13-14%.

These are C class properties but located in one of the best school districts in Maryland.

@Russell Brazil

Appreciate the response and insight you have provided.

Thank you

I have the opportunity to buy 3 properties from a owner retiring and selling off his properties.

7 total units

$70k a unit

$490k total

$65k total down

$20k total closing for all

Currently renting @ $800 unit

Need $40k in updating

Market rents $900-$1000

@ $900 that’s a 20% Cash on Cash return.

What are you looking for as return in your deals?

I know everyone’s strategies and goals are different, just looking to discuss.

Thank you

@Michael B.

I’ve used VPF from a wood floors plus warehouse. They sell left over flooring at discount. Got the stuff with the foam in the middle, offers sound proofing. Basically the life proof from HD.

Also I’ve done the peel and stick Vinyl tiles, I even laid them like tile and grouted them. Looks great at 1/2 the price.

20170705_225039001_1563296981473.jpeg

Anthony - completely agree, thank you for the insight and words of wisdom.

@Wayne Brooks

I could always do 3 Months rent at current $650 rate if I do not close.

Seller is divesting portfolio, this is 1 of 2 properties I plan on purchasing from him. This one from the MLS and another 4-plex on seller financing.

Why walk into a headache and lower then market rents if I do not have too? I understand you receive a benefit from taking over this problems from seller with lower purchase price.

But the worst they can say is no, right?

All tenants had initial 12 month lease that has converted to month to month.

I feel like i would rather have the unit free to update ASAP. The other 2 units more than cover expenses.