All Forum Posts by: Ryan Rader

Thanks @Corey Edwards. I actually live in South Charlotte, So I might try to attend tonight. Some people make it seem so easy to get funding but I keep hitting road block after road block. I keep getting told that since their are 2 properties on the same parcel it makes it hard to get financing or the sell of the property is less that the rehab, so we can't help. I also get told that since this is my first commercial flip I am unable to get funding. I get the experienced piece but I do have a lot of construction knowledge and flipped the house I live in but I get they don't want to consider that. Nonetheless I do not understand the 2 properties on the same parcel piece. This is one of those deals I would be willing to partner with someone so I can make some money and gain experience. 

I looked at Self directed IRA's but all profits have to go back into the IRA plus I am unable to work on the building per what I have been told.

So what am I missing??

I have spoken to several banks and other lenders today. I keep getting told that because the purchase price is less than the reno that they can't help. Also was told since the single family home is on the same property as the duplex that they are unable to help. They all agreed that the it sounds like a great deal but they are unable to help. So everyone says that if it's a good deal the money will come. I am definitely not seeing that??

So what I found out from the county zoning office was the property could only have 3 units on it. So my plans would chance a bit so in this case it would be a duplex with 4 bed/2 bath and a single family home with 4 bed/2 bath. The sqft of each side of the duplex is roughly 2000 sqft. The house is 2100 sqft. So I have check local rent in the area for 4 bed/2 bath and the rent is on average $2000/month with $1000/month being the low side and $1667 being the median. 

So spoke with the sellers of the property and they are willing to work with me in regards to numbers since I uncovered the limitations of of the number of units on the property that are allowed.

So my current thinking is...Offer $70 - 80k for the property and since we do not have to renovate as many rooms I am estimating rehab being about $150k or less (have a contractor meeting me Thursday to get another quote). So all in I am looking at about $220k - $230k. The properties ARV is $365k but some properties in the area are going for somewhere around $400k - $719k. Using the biggerpockets calculator using the low end numbers the profit would be $1456/month and CoC ROI is 56.62%.

Spoke to a couple realtors in the area and they feel renting out 4 bed would not be hard with 3 Universities in the area.

So what am I missing?? I am honestly thinking about cashing out my IRA to just pay cash, but really don't want to be hit with such high fees especially when cash is so cheap.

Thanks,

Ryan

@Chris T. So nothing virtually is happening?

@Lee Ripma Thanks. I have reached out to the county to validate that the zoning would allow it. At one point the duplex was a quad and the single family house was just that a house. I have also asked the Realtor for more details as well. Yeah I was not sure what works best in a college city either, hoping someone who has done it can help.

Thanks again

We are currently looking to purchase a couple buildings. The current owners converted a quadplex to a duplex. My question is would it be better to have a 2 units that are 4 bed 2 bath or 4 units that are 2 bed 1 bath in a college city?

@Allan Smith thank you for your input.

1) For comps. The range is difficult, currently on the market are 3 buildings one is priced at $365,000 all the way to $719,000. If you look at the one that is $719,000 to me this would be the closes to the one I am looking at buying. https://www.zillow.com/homedet...

2) Currently the property is zoned RG-2 which allows for multi family residency. I am attempting to contact the county for clarification as I am unable to find it online.

3) The rent I mentioned is based on rent that realtors have given me for the area. I spoke to one today and she said we could rent out per bedroom to college student (which their are 3 colleges and universities near the property).

4) The rehab costs, the cost came from a contract who quoted $160k but I believe it will cost closer to $170k (based on my experience gutting our home).

5) My problem with finding money....I am not sure where to look. I have looked at loans and such but some of them seem unobtainable or to much red tape. Honestly I have thought about cashing out my 401k to pay cash for the property but I really dont want to take a hit with fees. 

@Travis Fisher thanks for the input. I live in the Charlotte, NC area. I have checked for local events (within a 100 mile radius) but none seem to be scheduled. I reached out to a couple to ask when the next event would be held. Tough with all this Covid stuff.

@Anthony Dadlani Thanks for responding. My experience has been dealing with our own house. We bought it and in essence flipped it before we moved in. To give you an idea of the extent of the projects, we ripped out the kitchen, removed a extra stairwell, moved a bedroom wall that was off the kitchen, cut concrete and added plumbing to make the bedroom a laundry room, converted the old laundry room upstairs into a bathroom for my daughter, stoned a fireplace, new flooring and carpet and ran all new electrical and piping to the new kitchen. Worked with each contractor and managed timelines and all inspection. So long story short, this would be my first investment in Real Estate outside of my own home. 

I would love to have a conversation. I will send you a private message to coordinate a time.

Thanks,
Ryan Rader

Are there any new scheduled times for this meetup?