All Forum Posts by: Account Closed

Hey BP!

I'm going through a struggle I'm sure many of you are, finding a good contractor. Looking for recommendations specifically for masonry work but interested in connecting with any good GCs that service the Gardner, MA area. I currently own a 3-family and have another property under contract. Definitely looking to expand in this area. Could lead to a long term, mutually beneficial relationship. 

Thanks @Victor Viyuoh! I was looking for some solid cash flow on my first deal to help carry future deals and as of right now things are definitely working out great 👍

Thanks @Tyler Kaye and @Michael T. ! 

Investment Info:

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

Purchase price: $163,000
Cash invested: $32,000

House hacked my first multi-family property. Over the course of the last year I have completed 2 extensive apartment rehabs, 1 light rehab, exterior paint job, landscaping, new roof, water sealing basement and tons of other improvements here and there.
Here are some numbers from the property

PITI
$1249

Rents before improvements
$650
$1200
$850

Rents after improvements
$1250
$1300
$1200
+Coin Op Laundry

Attached are pictures of some of the updates

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

Low money down
Easy access to complete construction in my free time

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

MLS deal

How did you finance this deal?

FHA 3.5% down

How did you add value to the deal?

Basement Unit- Total Rehab
APT 1- Some new floors, kitchen and bathroom updates
APT 2 - Total Rehab
New Roof
Exterior Paint
Landscaping
Water Sealed basement

What was the outcome?

Great cashflow and was able to create sweat equity

Lessons learned? Challenges?

Easier to gut then to rehab around existing materials

The whole point is to find a way to make my mother money lol I can do 2 deals in the next few months without her. I'm trying to find a simple way for her to earn some money with minimal effort

Thanks for the feedback @Brian Ellis Thats a great strategy. I have 3 unit that I am wrapping up a renovation on and I'm debating between doing a HELCO or a cash out refi to purchase a future property. Why did you choose the HELCO? I'm assuming its because you didn't want to raise the rate on your existing loan and plan to pay it off when you refi the duplex? What LTV were you able to get?

@Steve Vaughan At any point in time you can use a VA loan for 100% LTV. Even for a property that a person already owns they can Refi back to 100% LTV even if the property was not currently on a VA loan. By doing this I can pay back the HELCO almost immediately and her debt is cleared. At this point I can give her a %. Also the property is not my future home, temporarily maybe but this is only temporary means of financing so I can leverage the extra cash into a down payment on another property. I don't think that helping her buy a rental property is a good idea. She is out of state an I would have no over sight at all. Seems like a huge head ache to learn her market and then help her manage it out of state. If I could consistently repeat this process its just as good as cashflow for her and she doesn't have to worry about managing a property.

@Account Closed  The guy likes his apple sauce and cartoons I don't see the problem! HAHA wish my tenants were this comical!

Welcome to BP shipmate!

Hey BP!

I came up with this thought today while listening to a BP podcast and I wanted to run it by some members more experienced then myself to see what they think. I'm trying to kill two birds with one stone here so I hope this makes sense. My mother is pretty financially strapped, she has enough to get by but not enough to live how she would like to. Unfortunately she was severely injured in a car accident we were in when I was a child years ago and hasn't been able to work since. I'm thankful everyday that she pulled through and is able to live a fairly normal life. She has always been a great support system in my life and I'd love to find a solution to give back to her without stunting my business growth. Since her accident, my parents also divorced leaving her with only alimony. The one thing she has going her way is she has a beautiful house that is completely paid off. 

So now that you have the back story here is the basic Idea. I have a specific property in mind so I'll plug those numbers

My mother takes out a HELOC on her home

I use the money to cash buy a good deal under retail value (estimating 110k)

I use a small amount of my capital to make some improvements on the property (estimating 5k)

I then take out a loan on the house to repay the HELOC and give my mother some money for being my private lender (ARV 150k) I'll owner occupy the property and potentially use my VA loan to receive 100% of the appraised value.

Nothing too complicated. The thought is that we both get something we want (solid cash-flowing property for me and cash for her) I also want to provide minimum risk for her. I figure the renovation process should be quick and the HELOC should be paid back between 2-3 months. The real question is will she be able to qualify with minimum income? Also, if not, could I cosign so that she can be approved? I have absolutely no experience with HELOCs. I'm reaching out to my lender during business hours today but I'd love any feedback on the idea or the HELOC process from other investors. I've been running some options through my head so I thought I'd throw this out there. I'd also love some feedback on the amount I should give my mother. I tend to be way to generous with friends and family and I'd like to take the emotion out of it. If everything works out well I'd hope to rinse and repeat to produce income for both of us. Let me know what you think!

So I haven't been on here in a while and was very surprised to see this post was still receiving responses. I thought we were finished at the rabbit soup but I guess not haha I appreciate the outreach of concern. At the time of this post I was about 7 months into my professional career. So is was this a "professional" post, no but it wasn't intended to be that way. I was trying to display an interesting story that happened to me and share it with others that may help dealt with similar situations. That being said I don't take anyones comments personal and I am not offended in anyways. As I stated in a prior post, the situation has been resolved calmly and without any pushback. I even assisted this tenant in their moving process to help things move along smoothly. Some of you clearly think I'm a jerk but, that is not the case here. I have seen this person since they moved out and had a polite and friendly conversation. They have apologized several times for causing me the inconvenience and have thanked me for everything I did for them while they lived in the property. So for everyone who has posted about legal advise, I do honestly appreciate the feedback but, I am not concerned with this specific situation. For those who came to my defense and felt I was just sharing a story I'd like to thank you for taking this post for what it was meant to be. To all of you, I wish you the best of luck in your investing careers and hope everyone has a very green future! $$$$