All Forum Posts by: Toby Kim

I'm interested in birddogging. I'm a local investor myself with 6 units in the Atlanta MSA and 1 SFH in Charleston, SC. I'm a teacher so I have quite a bit of free time. PM me.

PM me. I have a handyman out here. If you don't need permits pulled he can do the work. 

@Dave Skow

Although are correct about those issues with an FHA I have to say that it is usually worth it if you have a low cash or credit score position since most lenders require 20-25% down on 3-4 units or +700 score to get the sub 10% down loans. Even if MIP is permanent it is oftentimes worth it given how little capital you need to purchase the quadplex. Also if it still cash flows after PITI it doesn't matter since you won't be paying anything anyways (your tenants will). You'll be getting paid to live in the property which allows you to save more and buy more real estate. Instead of sinking 100k into one property to save the couple $100 in cashflow due to the MIP why not make it up with another property? So buy a $400k quad with an FHA for $14k down and $10k closing cost. Now you still have $76k to go in for down payments for a triplex that's $300k. $60k plus closing costs and you'll prob still have cash leftover and you bought 7 units.

That MIP won't even be an issue.

Investment Info:

Single-family residence buy & hold investment in North Charleston.

Purchase price: $130,000
Cash invested: $6,000

SFH 10 minutes drive from downtown Charleston. Last affordable (sub 200k) area within 10 mile radius. Bought it to house hack after college. Now it is under an option contract by my former college roommate/current tenant.
Very proud of this one. My first property and it is going to help a friend become the first to achieve home ownership in his family. Who says we can’t all make money!

Investment Info:

Single-family residence buy & hold investment in North Charleston.

Purchase price: $130,000
Cash invested: $4,550

SFH 10 minutes drive from downtown Charleston. Last affordable (sub 200k) area within 10 mile radius. Bought it to house hack after college. Now it is under an option contract by my former college roommate/current tenant.
Very proud of this one. My first property and it is going to help a friend become the first to achieve home ownership in his family. Who says we can’t all make money!

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

Was looking for ways to achieve financial independence and experience real freedom. Stumbled across BiggerPockets at 24 in 2019 and my life changed forever. Started saving on a provisional teacher salary and was able to scrounge up $5k by next year.

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

Had a realtor work on a deal for triplex with me for 2 weeks. I couldn't pull the trigger because of $5k. Soon as I bailed he sent me 2 SFH to house hack. 1 was only $130k and seemed to be the cheapest thing listed in 10 mile radius of downtown in habitable condition. Pulled the trigger and closed in 2 weeks.

How did you finance this deal?

FHA loan. I should have used the conventional 97 loan though. But I guess with the little amount of money a .5% downpayment isn't much. I only had a 660 score at the time anyways.

$4550 downpayment, seller pays all closing costs. $800/month PITI.

How did you add value to the deal?

I waited. COVID/inflation took over and my equity just ballooned.

What was the outcome?

Now worth over $220k but the tenant has an option to purchase at $180k within 5 years. Cashflowing +$500/month until then.

Lessons learned? Challenges?

Wish I just pulled the trigger on the triplex. Could have been a much better outcome. But this worked out nicely. Just glad I got so lucky.

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

Yes lender was CMG Mortgage (Dave Restivo). Greatest lender for quick simple loan products.

Investment Info:

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

Purchase price: $410,000
Cash invested: $43,000

4 units. 2/1 each unit. Will attempt to stabilize all rents at $1200/month for $4800/month gross rent.

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

I wanted to scale up buy and holds. I believed that small multifamilies were the way to go for my particular strategy and financing options.

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

MLS. Realtor negotiated down from $450k. I offered to close in 30 days and showed all my paperwork and funds to show I had all my ducks in a row and extremely motivated to close. I even offered a 15k EMD. I offered $400k total. We settled at $410k.

How did you finance this deal?

FHA loan. Arguably the greatest financing product known to mankind.

How did you add value to the deal?

Rents ranged from $750-$1200/month. Thought with another $20-40k I could bring it all to $1200 base and let inflation take care of the rest of the increases. Using the 1% at $4800/month means it would be valued at $480k.

What was the outcome?

Still working on it. Finished renovating the unit I lived in and will be renting it for $1200/month. I put in $7k.

Lessons learned? Challenges?

Inheriting tenants are tough. I got lucky with a few of them but they also carry the lowest rents. I have 1 unit that are a bit of a headache in terms of rent collection (cash only for them) and bringing their daughter around (she is going through mental issues but unable to get help).
I hope to fix the issue soon with a turnover.

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

Yes. Breionne Jackson of NFTW Realty Team in Atlanta, GA. She’s the greatest. She has a great team of vendors supporting her so closing was pretty smooth. She’s also pretty well connected to the realtors in the area so that’s helpful when negotiating and trying to get your complicated “creative” offers heard.

We’ll versed* not adverse lol