All Forum Posts by: Sean Morrisey

Investment Info:

Large multi-family (5+ units) commercial investment investment in Aurora.

Purchase price: $540,000
Cash invested: $108,000

Purchased a portfolio of nine condos using a commercial mortgage, from US Bank, for 20% downpayment. All are rented through 2018.

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

All cash-flowing rentals that I purchased and earned a fantastic cash on cash return.

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

Loopnet through a client. Client decided not to purchase, so, I stepped in and bought the portfolio.

How did you finance this deal?

US Bank commercial mortgage with 20% downpayment.

How did you add value to the deal?

Cosmetic rehabs, but, mostly just increasing rents to what the market would demand.

What was the outcome?

Great cashflowing rentals. Currently, trying to pull out $100K equity to buy another building.

Investment Info:

Single-family residence buy & hold investment in Aurora.

Purchase price: $42,500
Cash invested: $42,500

Purchased as a foreclosure, using cash from a BELOC, and closed in 45 days. Refinanced into a 30 year mortgage and received 70% cash back. Rent the condo through 2018.

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

Foreclosure being sold at a discount.

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

MLS...multiple offers so I brought a strong cash offer.

How did you finance this deal?

Cash purchase using a business line of credit.

How did you add value to the deal?

New carpet, paint, appliances...cosmetic rehab.

What was the outcome?

I continue to rent the condo to this day.

Investment Info:

Single-family residence buy & hold investment in Aurora.

Purchase price: $82,000
Cash invested: $1

My wife's first condo. Lived there for two years and turned it into a rental property. My wife received $7500 from the federal government on a 5 year 0% loan to purchase.

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

No money out of pocket.

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

MLS...started as a lease option but we purchased after 6 months of renting from landlord.

How did you finance this deal?

FHA financing

How did you add value to the deal?

New flooring, paint, and appliances. Rented the condo quite easily starting in 2010.

What was the outcome?

We have the same tenants in the condo 8 years later!

Investment Info:

Single-family residence buy & hold investment in Yorkville.

Purchase price: $286,000
Cash invested: $28,600

My achilles heel...bought this home at the height of the market structured as a "lease option" to the tenant-buyer. Tenant buyer moved in 2011 and I have continued to rent his home monthly since then.

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

Bought this home for a tenant-buyer interested in performing a lease-option with a $10,000 option fee and a credit of $175/month for closing cost credit. Purchase never consummated from tenant-buyer and I continue to rent this home through 2018.

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

MLS...negotiated by an agent.

How did you finance this deal?

10% downpayment with a 80% first mortgage and 10% second mortgage.

How did you add value to the deal?

Not much...it was fairly turnkey.

What was the outcome?

Rent the home to this day.

Lessons learned? Challenges?

Lease options are purely speculative.

Investment Info:

Single-family residence buy & hold investment in Aurora.

Purchase price: $139,000
Cash invested: $1,390

Purchased this home in 07/2004 and lived there while renting out rooms to other 20-something single individuals. Cashflowed well for a few years, but, the City did not like the idea of renting rooms. So, starting in 2010, I rented out the home to a family and continue to do so to this day.

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

Leveraging my own expenses while earning profit.

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

Local nonprofit. Negotiated it on my own without an agent.

How did you finance this deal?

1% downpayment with Countrywide Loans.

How did you add value to the deal?

Partial refinish to basement and added a shower to a 1/2 bath.

Lessons learned? Challenges?

Renting to roommates can be challenging when utilities are included. Also, sleep and work schedules may vary.

Investment Info:

Single-family residence buy & hold investment in Hanover Park.

Purchase price: $121,000
Cash invested: $3,630

Entry level "buy and hold" investment in Hanover Park, IL. 2 bed / 1 bath at $985/month.

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

My first investment property! I was able to leverage the deal with $3600 out of pocket.

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

MLS...negotiated with Realtor.

How did you finance this deal?

First home homebuyer finance plan offered by DuPage Homeownership Center.

How did you add value to the deal?

Updates to property made in 2007 but was provided fairly turnkey.

What was the outcome?

Still renting it!

Lessons learned? Challenges?

Had a few evictions over the first four years. Other than that, it has been an easy rental to manage.

Corner Lot, single family home, ranch for sale rented at $2000/month. Tenant lease expires 05/31/19 but they wish to renew lease for 12 months at $2100/month.  Full finished basement with fireplace, full bath, recreational room, office and ability for a wet bar.  Vaulted ceilings on main level with granite countertops in kitchen and 3 seasons room off of kitchen area.  Fully fenced yard. 

Projected Cashflow numbers : 

Sale Price : $259,900

Annual Property Taxes : $6542

Insurance $1000/year

Interest Rate : 5.00%

Downpayment : 25%

Rent : $2000/mo

PITI : $1670.15

GROSS PROFIT : $329.85

Resident interested in renewing lease at $2100/mo to yield $429.85 after 06/01/19. Contact me with questions and find the zillow.com link for photos here : 

221 FAIRHAVEN PHOTOS

Looking to book tickets to four conferences this year. What do you recommend?

Check out True Submeter. I have not used them yet, but, if you call them they are very helpful at explaining their product and how they can assist you. Here's the website : 

https://truesubmeter.com/

Open to a 5 or 7 year ARM or 30 year fixed. 9 condos all located within the same homeowner association.

Value is roughly $810,000. Current note is $422,621. 52% LTV.

Thanks Tarik!