All Forum Posts by: Jeremy S.

This does not sound like a good deal as a buy and hold property for me. Look for something closer to your home or look for a multi unit if you are willing to invest out of your area. I'd also be skeptical of a flipper who didn't replace something as obvious as a bad roof. Where else did they cut corners that you can't see?

Rich Hupper It can be very difficult to find these type of deals on the MLS. It is very competitive and is the first place everyone looks for a deal. My property was listed with an agent but only on loopnet before it eventually expired and I was able to negotiate directly with the owner of the property. In my experience, you get the best deals when you are the only one making an offer on the property and that happens by doing some own marketing.

@Tim Porsche, I think you have the have the concept of BRRR correct but the numbers are just to tight on the deal you are describing.

I recently posted a recap of a multi-unit BRRR deal I completed over this past summer. It's not too far from your area and it may be helpful to you. Check it out

https://www.biggerpockets.com/forums/223/topics/243750-my-first-mixed-use-muli-unit-brrr-recap

I have borrowed private capital a few times and I would suggest that you only lend on deals where you have a first position mortgage and the borrower has at least some of their own cash into the deal. I would also make sure they have the experiance AND the cash on hand to fund the renovations. My title company took care of the paperwork but I, as the borrower, always paid the costs to draw up the note and record the mortgage with the county. If you PM me, I'd be happy to send you the contract I use as an example.

That doesn't sound cost effective to me but may be worth it to leave a single furnace and convert to gas. Or if some of the units are studio or 1 bedroom you could do baseboard electric.

Thank you @Anish Patel.  Keep me in mind if you come across any apartment buildings in need of renovations, I'm still looking for my next deal.

Thank you @Matthew Swisshelm and @Eugene Atamanenko for the support!  I have learned a lot from bigger pockets and I'm happy to hear my experience can help a fellow investor.

Thank you @Michael Le. I have actually taken some steps to start automating more of my business. I hired a PM after I had 10 units and that has freed up a lot of time and stress for me. I plan to start outsourcing more of my direct mail and cold calling but I really do enjoy being involved in my renovation projects and getting dirty sometimes. I think giving up my role as GC will be the last thing I hire out.

Thank you @Phil Long and @Brad Glenn, I appreciate the support.

Thank you @David Krulac, I guess this makes us neighbors.  Have you ever used the "about face" grant program that offers $2,500 to make exterior improvements to retail buildings in Mechanicsburg?  I'm thinking about applying for it in the spring.

Thank you @Travis Lloyd, it was definitely a learning experience.

Thank you @Mindy Jensen,The commercial space was actually the first unit I had a signed lease for and the last one to be completed.  I rented the space to an established dog groomer so the only modifications required was a bit of additional plumbing which I paid for. They provided paint for an accent wall but my guys painted it on my time.  I now know that having the tenants pay for these modifications is one of the advantages of commercial RE and I wont make the same mistake next time.