All Forum Posts by: Travis Steinemann

Investment Info:

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

Purchase price: $83,754
Cash invested: $1

This is a fouplex that was vacant and had an absentee owner. We are doing a full cosmetic renovation and doing most of the work ourselves. We budgeted $77,000. After rehab, our units should rent for $900-1000 per unit. All in we should be at about $150,000. The ARV should be around $300,000. I will update when we complete the rehab, but we are targeting mid-late September.

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

I love the idea of multifamily and passive income. I also wanted something that we could add value to.

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

This is my first deal and I found it from direct mail to absentee owners. It was also going through the foreclosure process. I got it for the payoff amount and it had been vacant for a year I found it through direct mail and the seller just wanted the payoff amount. He was just happy he didn't have to short sale. Someone else looked at it and tried to get him to short sell and then passed on the opportunity when he wouldn't, which is shocking to me.

How did you finance this deal?

Private money - $115,000
Our funds - The remainder
Planning to refinance after six months

How did you add value to the deal?

77k in rehab costs. We are replacing all cabinets, vanities, counter tops, appliances, a water heater, a couple condensers, and adding vinyl siding. We are putting in a ton of sweat equity. Scraping popcorn ceilings, painting, installing new trim (rented a scissor lift for a month), pressure washing the brick, replacing some windows, drywall patches, new shower surrounds, and ripping out carpet to add vinyl plank. Electrical and plumbing was pretty good, just had to fix a couple leaks.

What was the outcome?

TBD but so far we are on schedule and budget after 3 weeks.

Hahaha funny post. If it is a dying town, gentrification won't work. People don't move places for nice houses, they move placed for jobs. If there are jobs, there will be people. However, if the comps support the ARV and things are selling relatively quickly (days on market is huge), I would say go for it. It won't die in two months before you sell.

Sorry, Amy Verges is actually her name. I can't spell. 

Amy Vargas is pretty active on here and started a PM company because she was an investor and fed up with the poor quality of PM here. Might be worth a chat for you. 

Hi Brittnie, I recently closed on a fourplex in Baton Rouge that I am BRRRRing and from my initial conversations with the banks it seems like it will not be an issue. Start building those relationships now though. 

Looks like a nice house Mohammad! It's tough to get cash flow in the nicer neighborhoods down here, but house hacking is definitely a do-able strategy. It's all about learning though. 

Thanks @GARY LEONARD JR... That really helps clarify how it is different. You should provide a course ;)

Thanks Braden. I would prefer not to be sued so I think I will stay away from that :)

Hey guys and @Braden Smith... If you are doing RVM as a wholesaler, you technically are buying not selling. That seems like it would be different. 

The FTC says,

"Some prerecorded messages are permitted under these rules. For example, purely informational messages — to say your flight was cancelled, remind you of an appointment or tell you that school is opening late — are allowed as long as the business doesn’t use the call to promote the sale of any goods or services."

It doesn't mention buying. I don't know if that is treated differently, I was just curious. 

Curious about this too. Surprised nobody added their two cents.