All Forum Posts by: Steven Pool

Hi Kevin,

I would reach out to Jim from 20/20 Inspections. He used to be a landlord and now does inspections and so he knows quite a few people in the area. 

@Sam Clark

Welcome back to the Twin Ports Sam and good luck with your REI journey.

I've recently started in REI myself so I may not be the best to offer advise. But I can recommend by mortgage officer at NBC Mark Anunti. He's very hard working and easy to work with as well.

Cheers!

@Brian Egr congrats on the good deal!

Investment Info:

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

Purchase price: $115,000
Cash invested: $33,440

This was part of a package of two properties that I purchased from a retiring landlord. Both units are rented out and both are below market rent for the area. One tenant is on an annual lease and the other is month to month. I''ll be raising the MTM tenant's rent and singing them onto an annual lease after a two month probation time to make sure they're a good fit.

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

I'm interested in moving away from SFH and into MF

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

The unit was on the market for $20k more than purchase price and the numbers never made since. My real estate agent was also the sellers agent and, once it wnet off the mls, I let her know that I'd be interested in it if they came down on their price. She passed that on to them and about a month or so of it being off the market they reached out to me to buy two of their properties. We came to a number that we both agreed on and closed on both properties about a month later.

How did you finance this deal?

Traditional Financing 25% down plus closing costs

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Mark Anunti - Mortgage Banker at National Bank of Commerce - Highly recommended
Jamie Dalbec- Real Estate Agent at Coldwell Banker- Highly recommended

Wish I could be there! I'll be out of the area during that time! 

@Robert Shedden congratulations on getting started! Good luck!

 Great question Thomas. The reason is that when I closed on the property it was in the middle of February in northern Wisconsin. This is relevant because quickly finding quality tenants in the area during this time can be difficult. Coupled with the costs of turning over a property, and having a vacancy for an indeterminate amount of time contributed to my decision to go this route. These, I feel, are all legitimate business reasons. 

Could I have maximized income by immediately increasing the monthly rent, yes and he could have just as easily decided to move out and I would be dealing with all of the above. 

@Branden Drake I was in this same exact situation in February. The tenant has been there for about 10 years and was paying 417a month with market rent at 700-750.

After closing on the property, and before I went to go over the lease with the tenant, I typed up a rental increase schedule starting the rent would raise by 100 per month until it reached 700. When I went and met with the tenant I explained the situation to him and we each signed the rental schedule increase. He understood that he was paying below market and didn't have any intentions on moving out.

Hope that helps.

@Quinton Bogle

For your first property, I would suggest speaking with the bank that you are going to do the loan with. Some banks won't do a typical Frannie or Freddie loan for an LLC.

@Amanda W.

25% is pretty standard for small multi family as far as what I've seen. But my local bank doesn't require any points down for the deals. It may be worth it to ship around your local Banks to see what the others in your area offer.