All Forum Posts by: Alana George

 Hahahaha! yes! Kids are such great motivation while also being all consuming! 

I use contractors and subs a lot for my clients as a Realtor here in CA, so I didn't waste their time asking them whether they'd be able to come out, I just assumed they would since that has been my experience with them. Just make it sound like you're buying this house and you need work done, not that you may or may not buy the house, because then they'll think its a waste of their time. They'll make time for an estimate, and if they're too busy to do the work at the time (which the good ones are) they'll just schedule out the work to when they're not. Since escrow is usually 30 days or so, its usually in-line with their schedule. When I got into contract in OH, I asked my agent for a referral, and found 2 others online. I called them all and asked them to meet me at the property for an estimate. 2 of the 3 got their estimates back to me within a week and the third's email got lost (he wasn't the one for me so I didn't follow up). Since this property, I have paid my go-to contractor a couple hundred bucks for an estimate on a property I wasn't in contract on before making an offer. It's nice to have an established relationship now that I have this 1 deal under my belt. I'm sure it will be the same for you too! Best of luck!

 Thank you! :D

 This property is located in northeast Ohio. I chose this location because my in-laws are there and the numbers worked. My next step is a 5-8 unit multi-family in the same area. Long distance real estate investing is pretty much all I plan to do right now. :) 

 Yes, my first investment property. :) 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $62,000
Cash invested: $99,000

BRRRR deal, out of state during the pandemic with a newborn at home. It was a wild ride with many challenges!

Bought for $62K cash
Rehabbed and paid a crappy PM $37K
Low Appraisal at $110k
Got about $77k back with the Cash Out Refi
Rented for $1100/month
Just raised the rent in 2021 to $1185/month

$1185 rental income
-$598 Mortgage PITI
-$118 10% property manager (Self managed now)
-$118 10% Cap Ex
-$118 10% Maintenance
-$94 8% vacancy
=$139 Pure Cash Flow per month

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

David Greene's books Long Distance and BRRRR.

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

I found an agent through a coaching network I'm a part of. The home was a VA foreclosure listed on the MLS.

How did you finance this deal?

All Cash.

How did you add value to the deal?

I flew out there 7.5 months pregnant, interviewed 3 contractors and went with the cheapest (rookie mistake!). We painted, fixed ceiling cracks, replaced the floor with laminate and new carpet, replaced ceiling fans and light fixtures, bath vanity and toilet. We painted the kitchen counters, replaced the countertops with new formica (did not over build!) and bought new appliances. We ended up needing to do more once the tenant moved in, including installing a new sump pump and replacing the roof.

What was the outcome?

So stressful. But I feel more confident now. Lots of things didn't go to plan: w/pandemic had no income & I spent ALL of our savings on this investment AND I just gave birth to our 1st kid AND the fires in CA displaced us for 2 months. The contractor was delayed, I couldn't get anyone out because of corona fear, the property manager that I hired took advantage of us & charged us for things they didn't fix, the tenant called the city and they revoked our rental permit, & we had a low appraisal.

Lessons learned? Challenges?

1. Don't hire the cheapest contractor.
2. Don't pay the contractor the final payment until the job is done, even if he gives you a sob story and pinky promises to come back and finish. He won't.
3. Do not just find a property manager on google. It's better to go without one until you get a quality referral.
4. Keep your unsupportive spouse on a need-to-know basis.
5. Do not trust google street view when choosing the color of your new roof.

As a daughter who went to a little bit of college, I think a good idea would be a blend of options 1 & 3. If you have your daughter's name on title, there will be a different level of responsibility when maintaining the property. (God knows I've maintained every car I've personally purchased far better than the ones my father did!) I also suggest you train her to manage it, but maintain the last word on things like choosing tenants. That way she can say, "Sorry Samantha, I really like you but the owner denied your application" and not lose any friends. If you maintain open communication and clear expectations, there shouldn't be any friction between you two. You will be setting her up for success. Best of luck! :)