All Forum Posts by: Vernon Barnett

Will you self manage or hire a property manager? 

Because that another 8-10% going out on top of the 1595. Also in your calculations I don't see funds out of the 1850-1950 being set aside for vacancies, reserves & repairs. 

In conclusion, pretty slim margins on this deal. If you do move forward on this deal, what could help is to sign a lease w/ the tenants where they take care of all utilities.  

Build friendships with people who are like minded, not just the most liked. 

Austin good work with getting the ball rolling, number 1. Number 2, I'm currently house hacking in California and the advice I would give is to quickly determine if the current tenants are paying market rent. If they aren't, do all the marketing you can on Craigslist and other sites to increase rents and therefore increase cashflow for once you move on to the next one. 

Nice Scott. Lots of opportunity in Bakersfield. 

I see that you also invest @Grant Schroeder and you also are licensed to lend in my state. I'll definitely be seeing how competitive your loan packages are on my next income property. 

Investment Info:

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

Purchase price: $385,000

This multi-family is a 3-plex located in San Jacinto, CA. House hacking for 12 months and then on my way to another city to buy another mutli-family.
It was originally listed for $425,000 but along with a lower appraised value and some negotiation, I got the purchase price down to $385,000.

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

Originally I read Rich Dad, Poor Dad and it had immediate impact on my mindset. I also went to a Rich Dad event that came into town.

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

I found this deal while browsing realtor.com

How did you finance this deal?

FHA

How did you add value to the deal?

Repainted interior & landscaping work is coming. There is a horrible looking tree with no greenery sitting right in front of the home, I am definitely going to get that cut down.

Lessons learned? Challenges?

FHA appraisals and passing them are a hassle. But it definitely does help to get more bang for your buck in the 3-4 unit range.