All Forum Posts by: Thomas Myung

@Jake DeAtley Thank you !

@Jeremy Benson yea it's really difficult to find properties that meet 1% rule in this area. I guess what matter is investor's risk tolerance. 

@Jim Stout

thank you Jim!

@Jeremy Benson

$1600 + $1490 (inherited tenant) = $3090.

I put 25% down on the property with 4% interest which brings monthly mortgage ~$2300 after vacancy, cap ex, maintenance i guess i can calculate $400 ~$500 per month cash flow

Investment Info:

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

Purchase price: $500,000
Cash invested: $130,000

Long term buy and hold duplex in growing location

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

Location, cash flow potential

How did you add value to the deal?

the usual re-painting and cleaning up the unit. added new appliances
instead of dealing with lawn maintenance, we covered lawn with gravel.

Lessons learned? Challenges?

Always visit the property in person before submitting the offer

Investment Info:

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

Purchase price: $525,000
Cash invested: $23,000

Duplex in Pierce county purchased through FHA loan 3.5% down.

How did you finance this deal?

FHA 3.5%

How did you add value to the deal?

while living in the property, did some remodel on the unit - LVP flooring, re-paint walls and cabinets

What was the outcome?

property was re-financed to lower interest rete using FHA streamline during low interest period (~2.1% interest),
Unfortunately the loan requires to live in property for another year so hopefully after that will be able to rent out expect cash flow

Apartments.com (formerly Cozy). it's free and convenient. only downside is it take some time for rent to deposit in to your account

Investment Info:

Single-family residence buy & hold investment in Orting.

Purchase price: $184,000
Cash invested: $50,000

My first BRRRR property in pierce county purchased from MLS $184,000 rehab cost ~$45,000
after pulling equity out $210,000 (cash out refinance), property is cash flowing over $300 per month with appraised value $350,000

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

location of the property was near downtown and walking distance to trails.
also I was desperate to find deals on market

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

We found property listed 189,000 in Nov. 2020. I have done analysis ARV of $300,000 (conservative since it's my first flip), rehab cost estimated ~$30k put offer in at $180,000 and agreed to meet in the middle purchase price $184,500

How did you finance this deal?

Cash. with gift money $30,000 from relatives

How did you add value to the deal?

full gut rehab

What was the outcome?

after pulling equity out $210,000 (cash out refinance), property is cash flowing over $300 per month with appraised value $350,000

Lessons learned? Challenges?

Make sure to have reserve cash after purchase- construction was delayed since we were counting on W2 income to support rehab
go walk inside properties before submitting the offer- in this case we missed foundation problem which increased rehab cost
Always pull permit.