All Forum Posts by: Teryn Rynone

Investment Info:

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

Purchase price: $185,000
Cash invested: $48,839

4-plex close to front gate of Fort Leonard Wood. Each unit is 1 bedroom and 1 bathroom. The living room is spacious and carpeted. The kitchen provides ceramic tile flooring, black appliances, and plenty of cabinet/counter space. The bedroom is spacious and also offers a large closet. The bathroom is also spacious, offers ceramic tile flooring, and a tub/shower combo. Additionally, the units offer washers and dryers. The upper units have balconies and lower units have patios. Gravel parking.

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

The cash flow and cash on cash return was better than anything else I could find in the market.

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

My realtor brought the deal to me about a week before it hit the market with some basic details she knew from having been a property manger on the property previously. She handled all the negotiations based on my research and preferences.

How did you finance this deal?

I took a personal loan to take advantage of the lower interest rates. I later quit-claimed the deed to the LLC but made my intent to do so very clear from the start and was very open with the lender, who had no issues with my plan.

How did you add value to the deal?

None yet, but will consider some type of renovation in the future based on the market.

What was the outcome?

The owner ended up fixing a few of the eyesores and minor issues. My biggest concern was servicing of the HVAC and she took care of that before we closed.

Lessons learned? Challenges?

This was a very odd deal that lasted over 6 months because of a road issue. The road the unit was on wasn't recorded with the county as being taken care of by anyone. The underwriter of the loan wouldn't close until the road was resolved. There was a HOA that was trying to stand up but it took forever to occur. After having to get a re appraisal and another credit check because the initial expired, I eventually just signed for the road myself and became part of the HOA to transfer it back.

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

Lauren Pimentel with the Matt Smith Real Estate Group out of Saint Robert, MO.

@Mark Frattini Thank you for the reply and yes, I would be very interested if you would be willing to share your CPA's contact with me.

@Vania Castillo greatly appreciated! I definitely do need to go back into the profile & update that. Currently stationed in Germany with property in Missouri. I will most likely continue purchasing property in the locations I am moved to so it will be geographically diverse.

I was curious if anyone has a CPA or firm they work with that they are willing to share? Even better, if you don't have a contact, do you have suggestions of how I can begin my search?

I currently have a family CPA, great guy and family friend, but he's a little aged which makes his outlook on things slightly aged as well. It's difficult to have a discussion with him and learn so I'm primarily looking for someone or some firm that is strongly biased towards real estate that I could bounce questions off of for proactive tax planning.