All Forum Posts by: Alena Srostlíková

Hi Konstantin,

Thank you so much for your perspective and time. I totally agree and it's really great to get that second opinion from a fellow investor. :-) 

Hello dear fellow investors,

I've just bought an easy fixer upper that only needs cosmetic improvements (a fresh coat of paint, new flooring, tiles in the kitchen and bathroom, clean the pool). I bought the property 20–30 % below market value from a motivated seller in a very hot market ($702k $562k).

At first I was planning on doing the fix & flip strategy, since I invested 50 % of my own money into the deal (because high interest rates). That way I would make a profit of approx. $56k in 4–6 months.

However, I am also considering to keep the property, live in an ADU I would add to the property and keep the house as a short/mid-term rental. That way it would not only cover the mortgage payments, but would also save us $1k per month for an apartment that we're currently renting. I was thinking that once the interest rates go lower again (in a year or two), I might refinance the property, get that initial investment of $280k back and buy more properties. The mortgage payments would then stay the same or be even lower which could add another $300–$500 per month in cashflow.

In the meantime, the property is also going to appreciate by forced and natural appreciation at a 5% rate per year. So let's say I would be potentially able to sell the property in 5 years with a profit much larger than $56k – potentially $400k.

The problem: since this is my second property, I am still a newbie and am not sure what's the smart move here. I am afraid of the “can't see the forest for the trees“ situation. What is my overall motivation is that I love real estate, am getting better and better at it and would love to eventually do this full time. 

The question is:
– Either I make $56k now
– I rent the property out, save $1k monthly, refinance in 2 years and get that initial investment of $280k back to invest further
– Or I wait 5 years and make potentially $400k, however the whole market is going to appreciate as well + inflation and am not sure if that's smart

I am stuck in the analysis paralysis world and would love to know what a more experienced investor would do.
So thank you all for helping out a newbie. :-)

Thank you, @Dmitriy Fomichenko.

Thanks a lot @Demetrius Harrell. I definitely know what you're talking about right now. :-) Invaluable lessons indeed. 

Hi there all! I am also interested!

Hi Charles! How about their families or raising cash in their home countries from other investors? I myself am also looking to buy a property in the US and am currently figuring out a way to do it most efficiently. Greetings from Prague, Czech Republic

Retail fix & flip investment in Prague.

Purchase price: $100,000
Cash invested: $7,568

At the end of 2020, after 3 years of listening to podcasts and reading about RE, I bought my first property with zero money down (mortgage with 1.79 % interest rate). I figured it would make an excellent wedding venue while investing little money ($7,568 in total) into it. Since then I have learned a lot about project management and RE in general. Now, in 2022, I am selling this property with both forced and market appreciation for almost double the price including the business.

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

In 2018 I was getting married and figured, that wedding venues are superiorly far more profitable than typical long or short-term rentals. After that, I created my own analyzing method for such properties and started looking for a proper deal while overcoming my fear of the unknown (the actual buying process).

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

I found this subdued property on a Czech website (similar to an MLS in the States) that was unknown back then. The real estate agent took terrible pictures of the property. The lawn hasn't been taken care of for ages and the beautiful limestone barn was barely visible in the pictures. Since nobody reacted to the listing, the owner decreased the price multiple times. Thanks to that the price was super low. My biggest mistake was not trying to negotiate the price even further. :-)

How did you finance this deal?

Because my family owns a house with excess equity, I was able to secure a 1.79% interest mortgage to buy this property with zero money down.

How did you add value to the deal?

First, I added value to the property with simple landscaping work. Then, I hired a top 20 emerging architect that was happy to work with an art director who had crystal clear vision for the property. Since the barn looked lovely, the idea was nice, and the project would eventually add value to his portfolio, he offered us a great price for his work.

What was the outcome?

After some minor landscaping, mowing the lawn, and the architect's finished project, we figured it made more sense to sell the property and use the cash to secure more deals. After all, dealing with the day-to-day agenda of running a wedding venue would be time-consuming. In summary - it would take us much longer to grow our RE portfolio.

Lessons learned? Challenges?

Oh, sooo many lessons... First of all, I learned to do my due diligence thoroughly. Namely by talking to multiple contractors and obtaining referrals. After that, I learned to stick with great contractors and take their advice seriously – they really know their stuff. I also managed to shake off the fear of the unknown and just ask questions instead. Last, I learned how to effectively manage a project and that there is always a solution to any issue. Just be creative and open to new ideas.

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

I have. However, they are located in the Czech Republic. Message me if you want to get to know them! I am always happy to help. :-)