All Forum Posts by: Robert Vigil

Investment Info:

Small multi-family (2-4 units) private money loan investment in Mayfield.

Purchase price: $175,000
Cash invested: $60,000

May 2021 - I am finding out that insurance is much more expensive than I thought. The lender is requiring we purchase replacement cost insurance. This quote I received was in excess of $2700. It also includes a 1 million umbrella.

We have also run into a snag regarding our heloc. Our home was recently downgraded to a flood zone. The bank wanted us to increase the coverage to the amount of the heloc, but wasn't satisfied with the paperwork because the flood company still had us zoned B. Insurance company explained they update their policies once a year and it will be updated June 2021. We are waiting to see if the bank will accept that from the flood company.

In the meantime, we had an unexpected vacancy and the owners gave us permission to act as managers on their behalf and have us fill the vacancy. It took less than a day to find someone we trust. We are now preparing a property that isn't quite ours for the next tenant.

Investment Info:

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

Purchase price: $90,000
Cash invested: $28,000

Found an off market deal with a tired landlord. Spent an extra $5000 to make the apartment really nice and then rented it out.

June 2023 - Learned the struggle of small towns and multi-units. We applied for a variance to change zoning from a 2 family to a 3 family. We were told we were not allowed to put in the parking spaces necessary.

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

The deal made sense with the numbers I was running.

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

Found this on FaceBook Marketplace...negotiated with the owner.

How did you finance this deal?

Re-financed our personal residence for the down payment and conventional loan for the rest.

How did you add value to the deal?

Remodeled half of the unit and am working on finishing the basement.

What was the outcome?

TBD

Lessons learned? Challenges?

Had to fill the vacancy for the first time. Minimum rental requirements weed out not great tenants.

We had to be firm, but fair to inherited tenant who was always late with rent.

Investment Info:

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

Purchase price: $90,000
Cash invested: $28,000

Found an off market deal with a tired landlord. Spent an extra $5000 to make the apartment really nice and then rented it out.

June 2023 - Learned the struggle of small towns and multi-units. We applied for a variance to change zoning from a 2 family to a 3 family. We were told we were not allowed to put in the parking spaces necessary. Truth is, they were not interested in having it changed. Unfortunately, the small town has many homes that are abandoned and no longer being rented out and the town seems to like it that way.

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

The deal made sense with the numbers I was running.

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

Found this on FaceBook Marketplace...negotiated with the owner.

How did you finance this deal?

Re-financed our personal residence for the down payment and conventional loan for the rest.

How did you add value to the deal?

Remodeled half of the unit and am working on finishing the basement.

What was the outcome?

TBD

Lessons learned? Challenges?

Had to fill the vacancy for the first time. Minimum rental requirements weed out not great tenants.

We had to be firm, but fair to inherited tenant who was always late with rent.

Welcome Corinne!  I presently am investing in Mayfield where I live.  A family friend offered me a four plex and we jumped.  It has been a fun experience so far…not easy, but fun.  I’m not sure what I could help you with but I’m super glad your in the area.

I am a first time multi-unit investor...I’ll close on my first 4-plex in two weeks. I’ve shared what I’ve been learning with my soon to be high school graduate who has been motivated in evaluating properties with the calculators and wanting to look at houses.

He plans on attending college on the fall and wants to house hack and rent the rooms to other college students. I’ve thoroughly enjoyed the conversations we’ve had about RE.

What should I encourage him to do or be doing to prepare for his first deal? He has always been a hard worker and has filed tax returns since he was 14yo...even though he was paid cash.

We’ve applied for a credit card to start building credit. Is there anything else I can encourage him to do?

I’ve heard BP podcasts talk about investing in B class locations etc. What are those designations and how do I know what my area would be classified as?

Thank you for sharing that...I was lol.  It does make me nervous.  I'm hoping to close on my first rental property in two weeks...fun times ahead :-).

@Joshua Bailey wow!!! That’s exciting

@Joshua Bailey I’m purchasing a 4-plex in a couple weeks. We just finished getting approved today for the major portion of the loan. I’m using a heloc as well to close on the property. Good luck!!! Brandon Turners book on managing rental properties has been a huge help in preparation.