All Forum Posts by: Tammy Skeath

@Kenneth Garrett thanks, I think I will ask for a co-signer. 
@John Teachout yes it seems so many people are living paycheck to paycheck. 

Thanks for the input guys! I haven’t met her because this is out of state so it’s my property manager who’s asking if this will be ok. It looks like her credit was good until last year so it lines up with her story. We are still going to do our due diligence and call her employer, references etc. but if all else lines up we may take a chance on her. Fingers crossed! 

Hello BP family, I have a unit that has had several applicants but all have shown red flags. The last application has everything going for it except their credit score is bad (430). She recently went through a bad divorce and I guess no one paid for their mortgage or auto loan...? that's her excuse. From Cozy, I can see that she was on time with all her payments until last year around the same time for all accounts. These are the pros in her application:
- Teacher with 6 years at same job.
- makes almost 3x rent.
- Can put down 1st, last and deposit as well as a pet fee to move in.
-has good references from school
What do you guys think? yea or nay?

Hi @Justin Seng, that’s how I understand it works. I will let you know how my appraise in a few weeks. :)

Hi @Terry Fox I did evaluate them but after rehab I spent $277k on each duplex I bought and I’m getting similar rents as the brand new ones since mine are updated. Brand new duplex are getting about 1300-1400 in rent/ Per unit. So it didn’t make sense to spend $330k.

Hi Jordan, both duplex are 3:2 with single garage and fenced in yard. I rehabbed two of the units, with hardwood looking tile and new bathrooms. Built in 1985. They are in a nice area of SW Cape Coral.  Let me know if you have any other questions:)

Investment Info:

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

Purchase price: $255,000
Cash invested: $255,000

Purchased duplex to rehab and then hold as rental at market rents. Will refinance and then repeat.

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

I could purchase two side by side duplexes for a value.

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

MLS. All cash deal brought the price down.

How did you finance this deal?

Cash.

How did you add value to the deal?

Rehabbed- $22k per duplex

What was the outcome?

Renting them at market rent price. $1300/per unit. Refinancing soon and pulling cash out to repeat process.

Lessons learned? Challenges?

Once you know what the property is worth to you don’t budge on your number even if that means losing the deal. Not getting emotional about the property.

I’m interested! 

Hi Kiara, I just closed on 2 duplexes (3:2:1) in SW Cape Coral. Two of the units are rented at $1300 I’m renovating the other 2 and I expect to get something like $1325 (conservatively). The reason I don’t think I’ll get more is because the brand new duplexes (built 2017 or >) are the ones getting $1350+. I don’t have a property manager I can recommend yet but I’ll keep you posted... fee free to pm me. Best of luck! 

Investment Info:

Single-family residence other investment.

Purchase price: $60,000
Cash invested: $287,000
Sale price: $440,000

This was my first real estate investment. I purchased a lot in SW Cape Coral for $60,000. Worked with a builder in the area for a profit share and built a 4bd 3 bath pool home for $287,000. Sold house for $440,000. After profit share my ROI was 11%. Now, In 1031 exchange for buy and hold properties.

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

I was trying to get into real estate investing for the past couple of years. I knew an investor who did a similar deal and had worked with this builder and I basically copied his formula.

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

Negotiating the lot was the best decision I made. The lot had a burrowing owl on it and therefore had been dismissed by several buyers/builders. After some inspection we realized we could build around the burrowing owl without disruption to his habitat during the winter months. Also, the burrowing owl nest was on the perimeter of the lot, which helped. This owl saved us probably 30K in lot price.

How did you finance this deal?

All cash from our personal savings.

How did you add value to the deal?

Buying a lot under price in a sought after neighborhood. Working with a builder that was willing to do a profit share.

What was the outcome?

We made 10-11% in ROI and it took us 15 months from purchase of lot to sale.

Lessons learned? Challenges?

Be more conservative with construction costs. We were 13% above our construction budget which could have been dire had we sold for less.