All Forum Posts by: Kimberly Ashkenazi

Hello!

I work with an active developer looking for undeveloped land for MF development.  IDEAL parcels are:

1. In the DC MSA (PG, Montgomery, Howard, Frederick Counties)
2. Zoned for high-density residential (by-rights large Multifamily)
3. Will accommodate 45-60+ units, typically not more than 6-8+/- acres
4. Within a 1 mile radius of public transportation

We do several deals a year in MD and are always looking for good land. Shoot me any questions you may have.  Send me what you've got!

@Jason D.  I'm not sure I fully follow what you're saying...Is the question wether or not a hard money lender might use your $10K to re-lend to someone else?  I haven't run into that.  If you're interested in applying your money to a larger pool, you might look at p2p or crowdfunding sites.

@Jake Thomas brings up a good point.  If you have any consumer debt, consider paying that off first to balance the riskiness of investing.  If $10K is the only nest egg at this point, it'd be too risky in my book to lock the entire amount into an asset requiring debt service without a way to get the money back out quickly.

Like @Ben Leybovich mentioned, talk to everyone and see if you can drum up some private equity to pursue the BRRR strategy. Alternatively, if you have equity available in your primary residence, consider getting HELOC, buying properties with the HELOC as "cash", then getting all of your money out with a refi to a traditional mortgage.

Last but not least, @Adriana L. is right about needing income to get off the ground with typical lenders.  It's never to early to begin cultivating relationships with your local community banks.

Hi Donnie,

Great post with the detail and limiting beliefs.  It took us over a year and several offers before we got our first deal (and I'm not sure if we would buy it today, lol!).  

RE: Your deal --  what cash-on-cash return are you looking for?  For many of our rentals that are located about 40 minutes away from where we live, we are pretty hard line about monthly gross rent equalling at least 1.8-2% of our all-in investment.  However, monthly gross rents equal to 1.5% of all-in in our hometown (Frederick, MD) would be acceptable. So, what class property is it? What type of tenants can you expect?  Don't forget about closing costs for your all-in.

RE: Overall debt -- A mentor of mine recommends having liquidity to cover at least 50% of your debt at all times (or at least that should be the long-term equilibrium goal).  I would definitely try to extinguish "bad debt" asap. 

Good luck!! You've got this!! Stay disciplined to your model!

Hello BPers!

I recently acquired a triplex with tenants in place.  All of the tenants have lived there for 3+ years and none of them has a written lease.  I want to enter a lease with them, but I'd also like to ask them to fill out an application form so I have this information too.  Can I ask the tenants to fill out an application if they are already living in the property?

Thank you!

@Al Williamson  Awesome -- Thank you!! I'll read up on tenant training. :) 

@Andy Webb  Thanks!  3/1 units in this area should get at least $850 in rent and they are now rented at $600, $700 and $800. We are still waiting on their rent rolls and expense reports.  The sellers don't seem motivated to give us any proof of what the property's performance... :\

Hi!

I am in the process of buying a triplex that, according to the current owners, cash flows nicely at 2% (rare for this area!).  However, two of the units pay under market rents and the tenants in those units are very dirty.  But they supposedly do pay on time. Should we nudge these tenants out or just let them stay and keep paying? (They are on month to month leases.)

Market rents are $100-150 higher than what they are paying and the units would need about $2K of work each to make them attractive to regular renters.  Despite being pretty "icky", the units pass inspection.  It's tough as a new landlord not to make at least some basic improvements!

@Steve Vaughan You bring up some great points.  Thank you for your advice!  I think we're just going to stick with our original offer.

@Derek T.  Way to go!! The after pics are stunning.  I'm also in MD and it can be hard to find good deals around here.  Prices are high!