All Forum Posts by: Rawn Wilson

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I actually laughed when I saw these sheets.  Pretty professional.

I guess it all depends on financing. An owner financed 10% down 6% loan 25 amortization balloon at 7 sounds good, but does not leave much meat in the deal. What should these things cash flow? I like to analyze deals like this to get better at them and know a great deal off the jump when I see it.

Been looking at large multi family deals close to me and closing on my first commercial project shortly. I’ve run across an RV Park recently that caught my eye. Evaluating using SFR model, it looks great on the surface. It’s a 36 unit, 27 park owned and 9 spaces, large office with residential space, pool, and built pad for laundry in future. Last rent roll for 2017 was $161450 actual and expenses were $50,700 actual. All are metered for water and electricity on city services. Located outside of nice midsized town with a college located in it. Asking 1.5M. Paperwork looks mom and pop run, and I’m sure things are missing. Further evaluation would need info from more years, but surface evaluation looks good. Owners have a family situation and want to sell to move on. The formula I found for evaluation was amount of spaces x rent x 70. Just using 27 owned properties and avg 550 rent, that is 1M. I’m thinking I should do a deeper dive as it looks good. Thoughts?

I am evaluating a rental property that has 2 lots and 3 small homes on it.  All 3 units are rented, and the BP calculator shows that the numbers work.

I am visiting the properties soon and trying to think of good questions to ask the current tenants so I can dig deeper into the deal.  Here is what I came up with so far:

- What made you choose this property?

- Does anything need attention/repair now?

- What has been repaired in the past?

- What could I do to make this a better experience for you?

By walking the property inside and out, I feel I can answer basic questions like, "Do you have washer and dryer connections".  I feel that the tenants may be a bit more honest and open than the seller.

Thanks in advance.

LOL!  Then it pops out of the ground and creates a great skate park.  Can I charge for entrance?

I am leaning towards the sale as I have already come across other solid cash flow opportunities I could invest in.  Loose the pool, and loose the liability.  I am getting an appraisal next week to confirm value and that will help with decision.

I’ve searched forums and most people request PMs to get lender info. I just used Texas Trust for my refi. They had a few issues with the investor stuff. I would like to try something different with a piece of property I want to buy. It is 2 lots with 3 homes. It appears to cash flow and could be improved on to increase cash flow. All 3 properties are leased. 2 of them for many years to retired people. Price is $165k and I have 20% down if needed. Any recommendations on a good banker to help me work the deal with less hassle and not kill me with origination points? This will be my 4th investment property.

Ok, here we go.  I need to separate emotion from business.

I have recently started becoming serious about investing into buy and hold properties.  I have purchased 2 properties so far in 2018.  I have a third property that I have owned since 2003 and have rented since 2005 when I deployed to Iraq.  I have had good and bad tenants.  Current tenant has been there 2 years, is now a single mom and has a good job as a nurse, but is constantly late on rent.  (just separated and getting it together with her 2 children) She is currently on a month to month lease.  The property does not cash flow in its current form.  Do I terminate the lease and raise rent or sell and take capital to invest in a better cash flow property?  I am searching for a multi family and could do a 1031.

Here are the numbers:

I owe $97K and it will sell for $180K.

Mortgage with interest and escrow is $1225

Current rent is $1500, but I could get $1600.

The property has a pool, and I have a service that cleans it at $150/mo (don't trust tenant to do maintenance).

So NOW, I get $1500, pay $1225 Mortgage, $150 Pool Service, $75 Vacancy (5%), $150 Maintenance (10%).  That is negative $100 cash flow.

To continue to hold, I could refinance to lower mortgage to about $1000, increase rent to $1600, cancel pool service and cash flow about $360.

Or terminate lease for a struggling single mom and take the cash to turn into a larger investment.  I was thinking of giving her till the end of the school year.

What are your thoughts?

The property is all zoned residential and had a single family house, 2 small apartments, and 2 good sized auto shops with office space. It is in the heart of a great city surrounded by neighborhoods. It’s basically the one small block still left in that area with any kind of businesses on it. The shops were built before city code for commercial buildings was enforced and are grandfathered in. I want to buy, put money into it to get all 5 spaces rented out. I want to refinance and have little to no money left in it. This is an estate owned by 4 people and they want cash. 

Finished my first BRRRR in Houston, TX post Harvey. House took in 3-4 in of water. First time flood. I used private money for the $26,500 purchase with all fees, and the $55,000 rehab costs. So, about $80,000 all in. I'm in the Army and love to do construction, so it took 7 months. I hired a contractor to handle things while I was away. I took it down to the studs and redid everything. The plan was to BRRRR, but I wanted a resale exit strategy if needed. I moved walls to open it up and used above rental grade materials. I added a vanity in master bath and increased kitchen square footage by pushing into a garage closet that was not needed. Rented out quick at $1500/mo and appraised at $135,000. I took the full 75% refinance and got $96,000 back after lender costs. Not too bad. I have pictures in my profile. I'm working on an interesting property now that has 3 residential units to rent and 2 commercial auto shops to rent. I'll post updated if I get it.

I have done single family BRRRR and am familiar with the process. I stumbled across a deal on commercial property and I want to do the same strategy. All of the commercial lenders I have talked to have told me they will only lend me 70% of invested money (purchase price plus rehab costs). The new appraised value does not matter because commercial real estate is volatile and they want me to have 20% real money in the investment. There has to be a way to do this. What are some creative ideas? Here are the numbers. Purchase 250k 80k rehab. 330k total cash invested. I would need a 475k evaluation after to get all my cash back out. I believe the property to be worth that after rehab.