All Forum Posts by: Seth Johnson

This is a class C building, these tenants want do it yourself, rather than pay for full service laundry service.

I own a 30 unit building in the Phoenix AZ area and i'm looking for options for Coin-Op laundry.  I have been using CSC service works for the past 6 years.  The contract is up and I wanted to see if anyone had suggestions for other laundry service companies that they like.  I don't have any interest in owning the machines and being responsible for them.  I would just like to explore alternatives to CSC.  

Thanks!

@Andrew Postell I own two investment properties in Arizona that I own outright. What would be the best way to go about opening HELOC on one or both of those properties. Would I need to find a bank that is licensed in Arizona, or is the address of the property not relevant? ( I live in Texas)?

I have maxed out my 10 fannie mae loans and am curious to hear input on porfolio loans. I have 4 quadplexes that currently have traditional fannie mae loans, that I am interested in grouping into a portfolio loan. I have no intention or need to sell any of these properties in the next 10+ years, so grouping them and losing some possible liquidity is not an issue. The current combined debt on the 4 quadplexes is 350K. The combined value of the properties is approximately 1.3 million. This would be about a 27% LTV. I'm not really interested in taking any cash out, I just want to free up the 4 loans on my balance sheet.

What terms should I expect to receive if I go the portfolio route (interest rate? amort schedule? closing costs? etc? )  

What experiences have you guys had both good and bad, working with portfolio loans?  

Love to hear any feedback or suggestions that you have.  

I chose a 15 year loan because I have quite a few other multifamilies that generate enough free cashflow per month, so I looked at this investment as one where the tenants would pay down the asset, and i'd own the home free and clear sooner.  I spend just under 10K on the rehab.  The cap rate on this doesn't match the multifamily family investments in the phx metro area from 2009-2013, but it is still a 7.5 cap.  Like I said, it was decent investment that i'm pleased with, but certainly not a homerun.  

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Mesa.

Purchase price: $221,500
Cash invested: $67,000

This property consists of a 3/1 house and also a 2/1 apartment. House rents for $1,000 which is 10-20% below market, however I inherited this renter and they have been great. Once they move out, I will have a considerable expense with the turn. The apartment I renovated completely at the time of purchase and it rents for $875. This home as a 15 year loan on it, which is why the cash flow number is so low.

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

This deal penciled out pretty well, having both the single family house and the apartment rental.

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

This was an MLS deal and had been on the market for quite a long time. We were able to negotiate off of the inspection report and get the price down 30K from asking.

How did you finance this deal?

Conventional 15 year loan with 25% down.

How did you add value to the deal?

Did a complete rehab to the 2/1 apt that previously was uninhabitable.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Mesa.

Purchase price: $700,000
Cash invested: $780,000

Purchased a 30 unit apt. bldg (2/1) that needed a complete renovation. All units received new tile, new cabinets, appliances, tub surrounds, fixtures etc. We used a 350K hard money loan to finance part of the purchase and used my own capital (along with some small equity partners) for the remainder and the rehab.

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

This property provided and enormous opportunity to add value. We purchased for 700K, spent 325K on the rehab and when we were done the building appraised for 1.350 million in August of 2013.

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

This was an off market deal. Our realtor had a working relationship with the seller.

How did you finance this deal?

350K hard money loan, 455K equity raise, then used cash to finance rehab.

How did you add value to the deal?

We were able to purchase for below market due to the scope of work needed. We did a complete renovation, flooring, cabinets, counter tops, appliances, fixtures, showers, roof and 30 new A/Cs.

What was the outcome?

This is been the best deal to date. The property is a cash cow, and it appreciated very nicely.

Lessons learned? Challenges?

We were initially going to use the hard money lender to finance the renovation project, but as we moved along the process, we realized he was going to be challenging to work with in that respect. We feared he could slow down the renovation process, so we decided to self fund the renovation. As a result our contractor ripped through this comprehensive renovation in record time.

Yes. Its been fully occupied since November of 2107.   The rent revenue on it is $8,150 per month.  The units are 2/1 however, they are on the smaller side and there was no room to add washers/dryers in the units.  I believe that caps the revenue a bit.  All in all its been a great property. 

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $800,000
Cash invested: $924,000

I purchased the property in cash and self funded the rehab. I will do a cash out refi at the 2 year anniversary and take out 75% of the appraised value. Comps right now show it should appraise for 1.2-1.3 million. The monthly cashflow number is high right now, due to the lack of debt service. Once I refi the property I will be able to pull out virtually everything I invested in it, and it will still cashflow around $1200/month.

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

I bought this property from another investor who had done about 60% of the rehab. He has issues with his contractor and wanted to be done with the property. I purchased the property and finished the rehab which included, exterior paint and landscaping, 9 new AC units, and all new appliances. Additionally 40% of the units needed tile, cabinets and other cosmetic finishes.

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

My realtor brought it to me via the MLS.

How did you finance this deal?

Self financed with cash.

How did you add value to the deal?

Completed the renovation that the previous owner had started.

What was the outcome?

The building has been fully occupied and performed great since the rehab was completed.

Not calling back or returning emails in a timely manner, or at all.