All Forum Posts by: Robert A.

@Will Gaston that would probably be the best course of action for me, the benefit would far outweigh the expense with this type of niche. I would love some recommendations!

Update on the status, the seller is waiting to get in touch with the co-owner of some of his properties. So I won't have any new information until this Friday, unfortunately. So now its time to play the hurry up and wait game, which is fine with me. 

 Hey Will, 

Not 29203 thankfully, but close.. 29210. Greystone and some off broad. So not as bad as 29203/4.  Its a shame its not shandon/rosewood lol.

I'm still up in the air on that one. I have planned for pm expenses in my numbers. My partners wife managed an apartment complex here in columbia near the stadium, so we have experience on our team. I was thinking of hiring a VA to handle calls/take over my lead generation. My partner and I would schedule showings.

Hey BP, 

I'm talking with a seller who owns 28 units/10 properties (C--) in a 2 square mile radius of Columbia, SC. He has proposed seller financing, 10% down, interest only with a 10yr call. Still in the early stages, with nothing finalized. 

I originally cherrypicked 12 units at 450,000 contingent on any outstanding repairs needed . All units are occupied at 550, some on month to month. Lower income area, but I believe under market rents by 50-100.

 The other 16 are in rougher shape and area if I'm being honest. 450 month to month. These could be raised to 500, or more if I go section 8. Slight deferred maintenance.  Bringing total to around 700-750k purchase. Adding another 70 for rehab/reserves. According to my numbers, and given the sellers rough expenses... I'm at ~9,500 monthy expenses , and in a perfect world 13,800 gross rental income a month.

 I'm really thinking of adding these to the mix because hey, 16 extra units would get me right at my freedom number after my partners 50/50 split. If im going big on my first investment, might as well up the ante.

Interest rate TBD, but hes not really interested in making a killing every month (his words). He's more interested in deferring taxes as much as he can for his family down the road. Great guy, very reasonable, and one of the reasons why I love real estate, building relationships. Anyway 4-6% interest only would give me a healthy cashflow, range of 33% to 24% COC with no value added, just maintaining. Bringing up to market rents will skyrocket value and return.

Now, the risks. I'm purely after cashflow. Equity means very little to me, but I will have some as I'm buying under market. 10 years is a long time, I don't forsee that area becoming deserted or a warzone, but honestly who knows what the local market or banks will be like. 

My exit strategies would be refi into a commercial loan, perhaps release some properties from the note to refinance into 30yr, renegotiate with the seller for different terms or, what I really hope happens... have thousands of units in my portfolio and pay it off with ease!

Any insight would be greatly appreciated. My massive action may be paying off, but It could be a nightmare.

tl,dr:  lower interest only, longer term seller financed portfolio in C-- area, what would you do?

Great article Jeff, I enjoy reading your posts on the various re groups on facebook. Always very insightful. Thanks for giving back!

Thanks again Andrew!

My fiancé works as an accountant in Columbia, and has nothing, but good things to say about Burckett, Burckett & Burckett.

Have little to offer in advice, but keep at it brother, I'm positive next columbia meetup you'll be sharing details of your second property!

Hey Y'all,

Called a property owner today who is going through foreclosure. Turns out the hearing is tommorow. He is very willing to settle this directly with me. He is around 10k in backed payments with around 60k on the note. It is a 3/3 1800sqft. The home has some damage from previous tenants. The ARV for the home is a conservative 190k in an extremely desireable area ( A/B ) of Columbia, SC with a strong rental market. The house next door is a 2/1 that rents for 950. Similar 3/2 rent for 1100-1350.

As luck would have it, I work right next to the trustee attorney. The attorney notified me that I would need to get the property under contract. I have been given authorization by the seller to receive information regarding the foreclosure. I'm visiting the property this evening and hopefully get everything in writing. 

This is my first true step of action and want to ask if you where in my shoes, how would approach the situation?

Heres the url:

https://www.biggerpockets.com/forums/521/topics/520255-columbia-sc-meet-up

Hey Heidi, welcome to the forums! I'm a newbie so I don't have much advice to give, but I will say checkout the columbia  BP meeting on the 9th, I'm sure you will find someone more knowledgeable than I to answer questions!