All Forum Posts by: Travis Barkel

If you are an investor in Muskegon and you need some work done on your rentals, I can't recommend Best Price Roofing/Handyman Services & More enough.  They handle all the details, work with your tenants, and get jobs done so that you don't have to think about it.  

https://goo.gl/maps/BSXA2iGvoYoJPMzX7

Does anyone know if there is a regular Muskegon investor meet up?  If not, there's enough of us around, are you in Muskegon and are you interested in attending one?

#Muskegon #InvestorMeetUp

 Hey Victor, I have a single family downtown in Nelson on 2nd Street, a single family on the northside of town by Marquette, and a Duplex in Nims.  Muskegon has been a great market for a couple years now and I truly believe things are only starting to take off here.  Development is happening incredibly fast here.

Congrats! I live (and invest) in Muskegon it's great!

@Alex Breshears incredibly thoughtful advise. I am a big fan of the small but mighty portfolio as I do have a W2 and a young family that keeps me quite busy. I would like to expand but in a limited way in the next two years. As long as I'm getting the kind of deals that can cover the HELOC I feel like it's a decent strategy to continue to grow. I guess for now I'll keep my course and consider the extra money against the HELOC as future capital I can deploy into my next deal. Thank you, thank you, thank you for the help thinking about this from additional angles.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000
Cash invested: $27,130

4 bed, 1 bath, 1400 sqft - Inherited tenants are way below market rates, at end of lease there is room to increase rent ~$200/mo. Some updates required outside to boost curb appeal. Interior is ready to go after some fresh paint.

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

I am interested in expanding my portfolio and had some capital to place. I want to keep balanced portfolio but stay in Muskegon.

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

This was a Zillow find but I have an amazing realtor that made the deal happen.

How did you finance this deal?

Traditional 30 year fixed on this one. Put 25% down to get a bit better rate. 5.375%

How did you add value to the deal?

This needs some light updating outside. One window that needs replacement and low maintenance landscaping. Rent is below market and will be increased 6 months after closing.

Lessons learned? Challenges?

Cash back on negotiated issues is a great way to make the deal work for both sides.

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

Brian Klingel continues to be amazing. Give him a call.

Late in 2021 I used a HELOC as the down-payment on a duplex in Michigan. The duplex was turnkey, but has the potential to add a couple bedrooms in the future. Currently it is fully rented so will probably add rooms at the next turnover. My question is: should I be working to repay the HELOC or should I wait? The HELOC has a 10 year interest-only draw period (currently in year 2) after 10 years the loan locks an interest rate and is amortized over 15 years with no further draws. The rate is variable, and is currently at 4.5%. The monthly payment on the $40k that I've borrowed is $125/mo. I have about $10k of cash reserves that I keep for all 3 of my properties for vacancy, Capex, and repairs. The property cash flows even after the HELOC payment so I've been paying $500/mo to knock out the principal but because its a lower rate than I could refinance at today im not likely to do that. Should I be putting that 8k against the HELOC? The HELOC is completely liquid, I can just borrow it back out if I needed a repair or even a vacancy. For some reason the cash in the account feels safer than the HELOC debit card. Should I even be paying the extra principal ever month? Am I thinking about this wrong? Appreciate any and all advice!

Investment Info:

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

Purchase price: $150,000

Bought this duplex with a HELOC on another property. 2 bedroom downstairs, one bed up. Fully rented in less than 30 days for $1850/mo. On to the next one!

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

This is my first multi, I was excited about a little larger cash flow than my singles.

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

The house was on MLS but listed incorrectly as a single family and therefore priced below market for a duplex on that neighborhood.

How did you finance this deal?

HELOC on my primary for a down payment on a traditional 30yr at 3.2%

How did you add value to the deal?

So far I've replaced flooring and made access to the basement laundry possible for both units. Other than that it was a turn key investment.

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

LMCU has been with me all along my investing journey. Brian Klingel is a great realtor/ mentor.

I agree with Tim it is a tough without knowing the condition of the house.  Is cash flow your biggest priority?  I'd say you have a decent deal there but mostly from an appreciation/ equity perspective. If you're flexible on cash flow then don't plan to be able to get any cash from this investment for a couple years,  by then you'll have a run rate you can use to better understand what your real expenses are in those categories. 

Investment Info:

Single-family residence buy & hold investment in Muskegon.

Purchase price: $60,000
Cash invested: $14,000

2 bed, 1.5 bath single family downtown Muskegon. $850/mo rent

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

I had heard a lot about real estate investing from family and friends and wanted a cheap, low risk way to learn if it was something I could get into.

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

Found it on MLS used a good friend who is a realtor to lock up the deal. There wasn't much negotiation, they listed it for $64k, I bought it at $60k my initial offer.

How did you finance this deal?

Traditional 30 yr fixed at 3.6%. I put 25% down which was the required amount for my credit union.

How did you add value to the deal?

I painted the outside, but thats about it.

What was the outcome?

I reappraisal it 16 months in and the appreciation from the 2020 market gave me my capital back in a refi with only $2k of paint value add.

Lessons learned? Challenges?

So many things learned, ultimately I'm hooked, just bought my second property.

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

Brian Klingel (Klingel Homes) is fantastic, highly recommend.