All Forum Posts by: Kyle Smith

@Brian Ellis thanks! Then I ask myself, what type of pain do I want? The pain of learning contractor skills? Or the pain of learning to hire and manage contractors? hmm..

@Dutch Langley great reply Dutch! I'm of your mindset as well - run the business of real estate (hiring the contractor and manage them) rather than do it yourself. But we're young once with limited capital and lots of energy, so learning the skills will still ROI overtime. Appreciate you!

@Jim K. thanks for the reply! Indeed just dig in lad and get it done. 

The question becomes should I spend the time to learn the skill myself or should I hire a contractor like you to do it? Which implies I understand the value of my time and how best to use it.

@David Robertson thanks for your reply! My apologies on the late response I'm forcing myself to engage more on the BP site. I see you're in Kansas City, nice! I've looked at the market fundamentals and have begun analyzing deals in this market, my money can buy MANY more here than my local NoCo market.

I own a duplex in good condition and am wanting to upgrade the interiors of my units.

How does one effectively go about learning how to tile, install drywall, build cabinets, etc., with no previous experience?

...please lay out the process you personally took to amass renovation skill sets, thanks!!

Investment Info:

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

Purchase price: $405,000
Cash invested: $20,000

I'm an owner occupancy in a duplex close to my executive job at a nationally ranked marketing agency. This is my first of many deals to reach $10K monthly cash flow from my property.

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

I'm a buy and hold investor in real estate. I believe fix/flips are too risky for my current levels of risk tolerance and long term goal horizon. I want to use property as an income vehicle rather than a big pay day (sale of a business/asset).

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

I worked for free as an intern for a local real estate and investments firm. The owner liked me so much I got a job offer but declined as I also had an opportunity to start a technology career, and choose that. A few years later after I saved up enough liquid capital, became more educated, and had consistency in my pay, I tagged up with the owner and he acted as my broker.
I plan to used this broker moving forward - he advises from the heart and mind rather than self interests.

How did you finance this deal?

An FHA 30 year fixed loan. Only did 3.5% down, which I viewed as leverage.

I think you should buy properties outright with a buy and hold strategy, but I'm just getting started!

How did you add value to the deal?

I negotiated a lower purchase priced after a wisely invested property inspection. I also built my relationship with my broker leaving a positive review for his business and rapport building through met ups, phone calls, emails.

What was the outcome?

I'm living on one side with a roommate to save even more cash. I have a tenant on the other side who is a great tenant. Truly having great tenants is a critial operational point to get right when it comes to real estate.

Lessons learned? Challenges?

Backyards are nice to have if you have a dog.
Appliances break - have an emergnecy fund to cover such expenses and contribute to this fund every month.
Good marketing and tenant screening skills will save you time, money, headache.