All Forum Posts by: Sahleem Lee

@Whitney Hutten Thank you!

@Gregory Schwartz my end goal is to BRRRR them and grow my portfolio! This is very much different from SFH, before I didn't think too much of it being incomparable; man was I wrong!

My next step was to find an investor/rea to help me analyze this deal. My numbers were guesstimates, and I feel as though they were fairly in the ball park. I’m not expecting to hit a home-run, because I know there’s going to be some hiccups.

5 miles south of the location from the duplexes is another state! And everyone moves over there because property taxes are much cheaper. Is it possible to compare those duplexes to these?

@Ian Tvardovskaya I can’t seem to find the property assessors website in the county whatsoever! So I may have to visit the office, which may not happen because of COVID. But I got a cap rate of 1.49. As I mentioned in the post, there are no duplexes in that neighborhood at all. These three are the only ones available.

Good day everyone and I hope your RE investing is going great!

Starting this one off with an introduction.

I’ve been in the RE business for three years now and I love it! I’ve had an unsuccessful flip and lots of wholesale deals, that taught me a ton. Fast forward to today, I’ve been searching for deals everyday constantly, just waiting to pull the trigger on something. The ones that didn’t work for me, I wholesaled them to investors and made a fair amount of capital for my own projects.

I came across three duplexes driving for dollar$; they all had the characteristics of being vacant. My real estate spirit started glowing, and I immediately skip-traced the owner. I got him on the phone, we met up and got to know each other. Today, I saw the properties and they were right off the eye full guts! These things were built in the 60s and still looked as so. Me and my partner with a great amount of GC experience, estimated about 30k per-unit for rehab.

What bought me here today was the structuring of this deal. He bought them back in 2004 for 150k when they were in good condition. They are all 2/1 900 sqft; says he rented the units for 550 per-door when they were occupied. I used comps from near buy quadplexes that are renting for 725 per-door; same exact sizes. I also got confirmation from a local management company.

These properties are all on one deed! Does that make this deal commercial or residential? Also there are no comps for duplexes in that neighborhood whatsoever. Should I get it appraised?

I’m taking my time analyzing this deal very carefully! This is my first large deal and I’m in need of some advice. Please share all thoughts and suggestions!

Here is some math below.

PP: 175k

Repairs: 30k/unit

ARV: Unknown

Rents: 725/unit*4350= 52,200

52,200*50%(operating expenses)

26,100*36%(vacancies) = 16,704

I know I’m missing some things so please help me out!

@Mary Mitchell trust me I’m not taking advantage. The property sits in a C class neighborhood and has been distressed for years. The beams in the roof are sinking and the foundation may have shifted. That 30k can quickly turn into 37 or even more, my offer is a very safe and a fair one in my opinion. But thanks!

@Mike S. Yes, I’m still active. You’re very welcome Sir!

@Mike S. Thank you! I’ll be moving forward ASAP. I’ll be updating on the outcome of this situation.

@John Underwood let’s kill 2020

@John Underwood thank you!!

@Braden C. Sounds like a good idea! But I’ll allow the attorney to handle this one. I’m inexperienced with situations as such, I don’t want to slip and do the wrong thing. I’ll learn from the attorney and take my experience from him.

I’m glad you were able to keep your house. Sheesh!! People are low down dirty in the business. I’ve been burned by a few wolves in sheep clothing.

Thanks for the advice!!