All Forum Posts by: Alan Hon

 Not at all.  The hurdles you may have heard about are around long term rentals, not short term rentals.  Gainesville is VERY open and friendly to those looking to do short term rentals.  I'd love to work with you and get some going.

 I am.  I spend my summers places other than Gainesville as the swamp just isn't very desirable that time of year.  Now that I'm back I hope to be a frequent participant and hopefully contributor.

Investment Info:

Single-family residence fix & flip investment in Micanopy.

Purchase price: $160,000
Cash invested: $140,000

We purchased a distressed, bank owned, property on a lake between Micanopy and Gainesville Florida with the desire to launch our STR business. It was recently given a Market Value of $420,000 and has generated nearly $20,000 in STR income in under a year with little marketing.

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

Having purchased, designed and rebuilt more than a dozen REO's I saw the potential in this one.

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

We were able to work with a local realtor who sent us half a dozen properties that we were able to review. We ran the numbers and saw the potential in this one, came up with a cash offer and locked it down.

How did you finance this deal?

Cash

How did you add value to the deal?

Be able to see the true potential of a property I stood in the space, created a design and got to work realizing it.

What was the outcome?

The property was purchased for $160,000. We invested another $140,000 into it. The ARV was then projected to be $425,000

Lessons learned? Challenges?

The biggest lesson learned on this one was the importance of hiring quality subs. This was our first project in a strange town and instead of using quality labor we trusted the guy next door who stated he was a quality contractor. While he and his buddies wound up delivering in some areas, sadly they fell short on most. We wound up having to fire the neighbor and I rolled up my sleeves and finished it myself.

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

Sadly no. In the end I had to finish this one myself.

Investment Info:

Single-family residence buy & hold investment in Trona.

Purchase price: $75,000
Cash invested: $50,000

Our latest project is a 2/1 that we re-designed and rebuilt in order to capitalize on the STR market in Gainesville, Florida. The house was the ugliest house on the block but is located in the heart of the downtown area close to the University, a major hospital and historic downtown Gainesville. It took a bit longer and cost a bit more than we expected but in the end I think you'll agree it turned out great. The neighbors are happy and we have received a 5 star review from every guest.

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

Gainesville Florida presents an AWESOME opportunity for those looking for STR income. Transitional neighborhoods and high demand results in an amazing opportunity to create cash flow, reap the rewards of ownership and have someone else contributing to your retirement.

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

I work with a local realtor who found me a great off market opportunity.

How did you finance this deal?

The property only being valued at $75,000 with a remodel budget of just $50,000 kept us from being able to source through most hard money lenders so we had to come out of pocket on this one.

How did you add value to the deal?

the house was in horrible shape and had no flow to it at all. Over the years the kitchen was moved to the back of the house with no air flow so you could smell the grease from the moment you walked in the door. I stood in the space, came up with a design strategy and got to work gutting it to the studs. Removing a few walls we moved the kitchen to the middle of the house, created a brand new bathroom space, opened up the walls between a small non-functional porch and opened up the space.

What was the outcome?

The house is now a space where every guest has given us a 5 star review and more than paying for itself.

Lessons learned? Challenges?

We bought the house without any inspections and unfortunately had significant termite damage to the front porch. Thankfully I have been rebuilding houses for more than 17 years. I was able to roll up my sleeves and rebuild the front porch to be better than new.

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

Thankfully my team is experienced in every aspect of real estate redevelopment. From design to delivery we can do it all.

I recently returned to North Central Florida and am looking for a JV partner. While I have more than 17 years of experience locating, re-designing and rebuilding residential real estate to maximize the ROI, my most recent partner got some bad information. I spent five months executing a remodeling strategy on a very distressed property only to have the numbers falls WAY short of what was told me. That combined with a $13,000 repair bill has left me looking for someone to provide gap financing so we can both contribute to a team that is highly profitable. My Facebook page is 4HouseDocs. Take a look at some of my most recent projects, roll up your sleeves and let's make things happen.

Investment Info:

Single-family residence fix & flip investment in Micanopy.

Purchase price: $160,000
Cash invested: $140,000

We purchased a distressed, bank owned, property on a lake between Micanopy and Gainesville Florida with the desire to launch our STR business. It was recently given a Market Value of $420,000 and has generated nearly $20,000 in STR income in under a year with little marketing.

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

Having done several projects in the Midwest, I wanted to move my business to a warmer climate.

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

We worked with a Realtor who showed us this REO that already had several offers on it. We made an all cash offer that put us on top of the pile and secured the property.

How did you finance this deal?

Cash

How did you add value to the deal?

My slogan has always been "It Doesn't Take Eyes to See, It Takes Vision". The value I add to EVERY deal is the ability to see through the walls of a project. Seeing through the walls allows me to see the potential of each project I do.

What was the outcome?

This property was recently given a Market Value of over $400,000 which would be a gross gain of more than $100,000

Lessons learned? Challenges?

While I had two crews working full time in the midwest, I didn't have those connections in the area I did this project in. My biggest challenge was finding skilled, reliable labor. The lesson learned was one I learned in working with a builder who built more than 100 homes per year. Budget for quality, reliable labor. You may make less on each project but will more than make up for it by being able to do more projects with less stress.

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

Sadly no

I have been an investor for more than a decade now.  I've spent the last four of those years flipping houses and can tell you that the tools and networking available through the Mastery program would have made me a millionaire by now.  I have four houses going right now and while I have a LOT of experience in real estate I lacked the systems and structure they offer.  The ability to network with other investors some of which are offering capital the others whom have properties to sell will take my business to the next level.