All Forum Posts by: Ron Todd

@Blake McWilliams Wow, that is a lot! I've asked this seller for any documentation he had and he's yet to provide anything. He said he wanted to meet in person first. I can kind of understand that he wants to make sure I'm legit but that's a bit of a red flag for me. After we meet, if he doesn't provide documentation then I'll move on. It's nothing spectacular, just utility bills, trailing 12, rent rolls or whatever he's got so I can build an accurate assessment and make a fair offer. I hate to be cynical but I feel the same way you do, I need things in writing.

@Jaycee Greene local bank. The PFS is strong but I think most of it stems from building a relationship over several years. I'm in a small town so the people aspect is a huge consideration. 

@Jaycee Greene sure thing! Asking 30k a door, I just did a drive by the other night but have a walk through tomorrow to get an idea of what is needed. It's a mix of single and two bedroom units. I've got my local lender lined up. Offering prime +.5 and 30 year mortgage with no balloon. 

@Blake McWilliams thank you, that's fantastic advice! If you don't mind sharing, what maintenance issues did you run into? They just put a new roof on, so that's one large expense I can budget less for early on. Each unit is on individual wall/window units and I know from experience those can be a pain to deal with too. 

It's a C class property. Rents are 6-700 a month. This area has a lot of demand in that price range without doing section 8. I'm not opposed to section 8 (I have section 8 properties) but I would prefer to avoid it for this one. I've got a PM that handles a lot of units in this range so we are both fairly well versed on what to expect.

Hi BP!

I'm looking at purchasing a motel that was converted to 10 long term rentals. I'd appreciated any advice or gotchas if anyone has seen something similar. The numbers seem good enough at first glance for some further research.

-it's not separately metered, all utilities covered by owner

-no pool or common areas besides laundry. No landscaping just a gravel parking lot.

I have quads so I'm familiar with multifamily challenges. Anything change for a 10 plex?

Thanks!

Hi all,

I’m looking at buying a 24 unit complex. The largest multi I’ve done to date is a quad. I’d love any lessons you’ve learned and any tips for a project this size. Good, bad, ugly, send it my way!

I've had good results with the glue down LVP. If you are going to install yourself, I'd suggest the click lock as it's easier to install. I have a floor guy who does great work and I've had no issues with the glue down so far. I haven't had to repair any lvp yet, but I had heard with the glue down you can just repair the one damaged piece without having to remove a lot of additional pieces like the click lock. 

Hi all,

I'm looking at running new hvac ducting through my attic and filling in the previous ducting that was run through the slab. I've heard of using foam and/or cement to fill in the old ducting and I'm curious what y'all have ended up using.

Thanks!

35k goes a long way in Oklahoma. I'm going to assume since you have 35k to invest, you've put aside some extra for the "unexpected joys of real estate" (if not, please do!). For the quad I'm buying, cash to close is 30k and that's with 25% down payment on a 103.5k property. It could rent as is, but I'll put 15-20k into it force that appreciation. They are used to doing relatively small loans here, I know a guy here who financed a duplex that sold for 45k. These low prices are a trade-off though, insurance is high in the Midwest and it's harder to get those huge appreciation stories you read about here. It's fairly easy to cash flow $200-300 a door all things considered. Good luck!