Two Homes + Two Garages on One Lot = HUGE DEAL

[Janelle K. Eagle]

Doug and Theresa at the key handoff for their new home in San Luis Obispo

I love the Bigger Pockets network. I've had the honor of representing many members of this community on investment and primary home purchases in the San Luis Obispo area and each one is interesting, challenging and for me - personally fulfilling because I am helping a fellow investor get a GREAT deal.

That couldn't be more true for my buddy, Doug and his wife Theresa. Together, they made a big move up the California central coast to relocate closer to a new job in San Luis Obispo, CA. To make the math work as they found a soft place to land, they smartly decided to house hack their primary residence by renting out individual rooms to traveling professionals on a month to month basis (MTR). They installed smart locks on individual doors, worked with me to set up leases, and took the leap.

When their own furnished finder up the coast fell through, they reached out to me and I was absolutely thrilled to offer them to be the first tenants in my own investment property in SLO - The Victorian Singer. They were a dream as I finished construction in the second unit and worked with them steadily to identify an investment property of their own in the area. We previewed properties and took our time as they had the luxury of NO URGENCY to make the right decision at the right time. 

Thankfully - Doug's keen eye was able to analyze every property that came onto the market using many of the tools he learned through the BP community as well as other gurus such as Pace Morby. He identified a great opportunity in a downtown property that had TWO HOMES and TWO GARAGES on it. Situated in a great area of town and with ideal set up for a lot subdivision and friendly ADU zoning - this had huge potential. One house was recently renovated and in turn key condition, and the other was... not. We were honestly worried that because they were using financing (a conventional loan), that it would not pass appraisal due to its condition.

In fact - the heating on the home was not functioning, a condition that would not pass muster, and fixing it was a condition to close escrow. Thankfully, both the lender and I had strong contacts and were able to get this resolved in a super timely manner. Our escrow was extended by a few days, but the sellers and my clients were THRILLED to close this deal. 

Some important key factors that went into securing this property:

1. Having an open mind when evaluating properties

2. Working with an investor-friendly agent with solid lender contacts

3. Working with an investor-friendly lender

4. Having patience throughout escrow, especially with inspections