All Forum Posts by: Tyler Leonard

West Warwick 

Hi All,

I am looking to raise 600K to purchase a 83 Unit Apartment Complex located in Rhode Island. The site is located in a town where I already own 60 units. Purchase price is 3.45 million or 41K per unit. Building is 100% occupied and NOI is on track to do 290K in 2018 based upon TTM data. Rents are well below market ($900-1000 for 1 beds, 1100-1200 for 2 beds, and 1300-1500 for 3 beds) and the site is currently being mismanaged by out of state owner/management company. 

If you are interested in learning more about this opportunity please feel free to PM me.

-Tyler 

Haha it was a great flip and many more to come!  I put it on the market on Friday afternoon and scheduled an open house on Saturday at 2:00 PM and by 3:00 PM it was sold! 

 1. Family member is a realtor so they kick the commission back to me on all of the properties I purchase. I will have to minus the closing costs out of the profit but they will be under $5,000.  

2. I have two guys that earn ($10-14/hour) that did the bulk of the work (saves a lot of money in comparison to hiring a crew) ie. Installed 1000 sq. feet of hardwood floors in 2 days. I paid a few hundred bucks in labor, 2 lunches, and 2 packs of cigarettes vs. $3500 in labor).  

Thanks for all the great feedback and support!  I am so glad that the BP Community found this post to be motivating.  Converting the home from 2 bedroom to a 3 bedroom and increasing the square footage from 1,100 to 1,900 made all the difference in the world.  I saved money everywhere I could by negotiating with subcontractors on their prices.   Below is a brief breakdown of the deal. I hope this helps.  Also, for those ( @George P.) ( @Lonniel Ingram)  who asked about the spiral staircase, it was something that I did not have intentions of installing. The inspector accused me of moving the staircase to the basement and said I would have to kill the stairs if I didn't bring it to code.  In order to bring it to code I would have had to extend the landing and it would have made it so anyone taller than 5'5 would have to duck going down the stairs.  There was no other means of getting stairs to the basement so I went online and custom designed the spiral staircase (cost $1,500). It only took a couple hours to assemble and it really made the house unique.  

Purchase price: $105,000

Repairs: $40,000

Interest Expense: $2,100

Total Expenses: $42,100

Asking Price: $249,900

Final Sale Price: $259,900

Profit: $114,900   

I am going to be reinvesting the profits into the purchase of 20 unit apartment complex.  I currently have 36 units and this will bring me to 56. My goal for year 1 of RE investing is to hit 100 Units so this flip has brought me one step closer to reaching that.  

Hi Christian, 

I'm from Rhode Island as well and recently started investing multifamilys this year. I have grown my portfolio to 56 units to date so I'm happy to provide you with some advice on purchasing your first one.   

Hi, I just wanted to share my first flip with the BP Community.  On February 1st I purchased a single family for $105,000 from a wholesaler.  The property was the ugliest house in the neighborhood and was abandoned mid-rehab when the insurance proceeds did not cover the cost of to repair the home after a small a fire.

Because I purchased the property in Cash and bought it As-Is the local building officials were not in the loop and immediately put me on their Sh*T list when I filed for permits. Original owners attempted to put the house back together but must have ran out of money which is why they walked away. It took me OVER 30 days to get all the proper permits but we finally started March 1st. After 60 days of construction, I put it on the market and it sold within 1 hour! I knew there was inventory so I even priced it at a premium but it still sold in less than one day. Now all I have to do is cross my fingers that it will appraise!

Here are some before and after photos:

@Dawn Brenengen Yes and No. The property has great cash flow (4k per month) with all expenses paid by tenants (Net cash flow is approx. 25K a year). 

I am debating if it is worth just keeping it and refinancing with the bank at a lower rate OR selling it to gain a 50K profit.  My goal this year is to gross 500K+ in rental income but at the same I want to have some of my own cash to be able to reinvest into flipping some properties or renovating my existing units so it less money that I have to borrow from lenders.

The mortgage company only knows about 5 properties as they are all in a blanket loan with a private lender under the same LLC however, I own a total of 9 properties or 33 units in total (5 4plexes, 1 6plex, , 2 3plexes, and a single family that I am currently flipping). My current goal is to refi the 5 properties in blanket loan individually at a lower rate with the mortgage company.

Yes it possible to refi some with a bank and keep others private but I want to refi these specific properties now as I am paying 12% on the blanket loan vs. 8% on my other properties with different lenders.  

@Jerry W.undefined

HI I am new to BP and I recently graduated from college (May 2014) and quickly started investing in multi-families. I had some cash of my own and I quickly got up to 33 units. 

 I used private lenders to finance my properties and I am in the process of refinancing them with a local bank however the banker encouraged me to sell 1 of my properties as it is easier to refi with >5 properties.  

I have a buyer for one of my 4 families for 240K (I paid 190K and put in 2k to date) however I am nervous that it wont appraise for that much.  I have basically disrupted the comps in the local area by purchasing multi-families for such a deep discount but I fear that it could come back to haunt me if the appraiser cant find proper comps in the area. 

Is it possible to refinance the property with a commercial loan at 3.49% (rate from local bank) and then sell the 4 family to the buyer but hold the paper on 240K in order to avoid the appraisal process? Please provide me with feedback and/or suggestions. 

Thank you all for the advice! I have recently visited a local bank @James Paine @Gino Barbaro and was surprised how interested they were in refinancing my properties.   I will let the commujnity know how I make out with the refi.