All Forum Posts by: Amit Chawla

I have 2 projects going on now and a 9 SFH developement. I also have about 2-3 projects lined up as soon as these finish. Its tough to be in the game, but if you can make it work now, then when the market is good, you should be killing it.

If they're renting for the same amount, and the mobile home is half the price.  It makes sense to go that route.

@Mary El I have heard of getting REPS through operating a STR for 7 days out of the year. If thats the case, then would it work if I rented my 12 unit apt building as follows:

11 units LTR

1 unit STR

Not sure if this would satisfy the loophole, or if it makes no difference as my property manager will be the one running everything.  Again, as mentioned above I need to talk to my CPA to get clarification.

Investment Info:

Condo buy & hold investment.

Purchase price: $180,000
Cash invested: $36,000
Sale price: $280,000

3 Bed 2 Bath Condo

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

Purchased as primary residence. Housing market was hitting bottom and starting to rebound.

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

MLS with a real estate agent

How did you finance this deal?

Conventional financing

How did you add value to the deal?

Minor value add, main thing was just holding for a long period

What was the outcome?

Ended up selling at a discount due to tenants trashing the interior. Was rushed for time so did not think through possibilities of trying to do a cash-out refi in order to use money for a new down payment.

Lessons learned? Challenges?

Again, take the time needed. Had I spent maybe 15k on the unit, I could have sold for closer to 350k. But again timing and other challenges made it easier to just sell at that point. HOA was a huge pain in the butt. They constantly fined me for things that were not justified. Also, HOA charges and budget seemed extremely high.

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

Worked with a realtor who I would never use again and have not used.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $571,000
Cash invested: $120,000
Sale price: $850,000

3 bed, 2 bath SFH located on 8000 sq ft. lot

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

Purchased as primary residence.

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

on MLS, my realtor at the time brought it to my attention.

How did you finance this deal?

I had a condo that I was in the process of selling in order to purchase this. My tenants in the condo became unresponsive as soon as I gave them notice. Sale of condo ended up being delayed so I had to borrow money from some family members in order to close on this. As soon as I got my condo sold, I repaid all money borrowed with interest. Combination of borrowed money (repaid) for downpayment and conventional financing.

How did you add value to the deal?

Renovated maybe 2 years after purchase. Then rented for 2 years

What was the outcome?

Ended up purchasing another primary residence and renting this out for 2-2.5 years. Sold the property to qualify for the cap gains exception, having lived in the property for 2 out of the past 5 years. Sold at the market peak...1 month sooner would have been preferred but still timing was almost perfect.

Lessons learned? Challenges?

Be wary of renovation budgets, especially when you are living in the place. I ended up spending more than expected due to frustration and time constraints. Take the time to properly plan out what needs to be done and price accordingly.

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

My uncle is a real estate agent and ended up helping me sell the house for a reduced commission fee. The sellers wanted almost 25k in credits for certain "repairs" they deemed necessary, my uncle ended up getting them to take $1000 instead and close the deal.

 How much would have to be put into a policy in order to have a cash value of $100,000 vs putting $100,000 in the bank?  Im guessing you obviously have to put more into the policy in order to reach that cash value of $100,000.  So if I am just starting investing, wouldn't it be easier for me to save $100,000 instead of trying to get a whole life policy with a cash-value of $100,000?  So yes, I might get a slightly better return on the policy, but it would take me far longer to get to that cash value vs putting it in an account.

From what I can tell, BRRRR is the main play right now. Most SFH or Multi-units wont cash flow unless its in a market where prices are low and rents are high...there are a few still out there. You can still find a deal but it will take analyzing tons more to find that needle in the haystack.

@Daniel Shuler I think whats going on is that a lot of those buildings you are seeing are owners who are long-term holders and are willing to wait until they either get a buyer at their price or until they NEED the money in which case they might sell.  How else can you explain buildings listed for over 400 days in some cases with no price changes and no seller financing available?  They must not need to sell, so why not wait until they get the offer they wanted.  

Isnt option 2 the real estate agents actual job description?  You're putting in all the money and they're giving you what?

I feel like all of this information can be found with either a good realtor or some research.  Or reach out to people on BP and ask your questions.  Everyone seems willing to help each other out.

I'd be interested in learning more about your idea.  PM Sent

@Tyler Sample If you think that "You" are the issue for your family.  They don't take you seriously, or dont respect you.  Then maybe you can find a good friend or business partner that can approach the family (on your behalf, without letting them know he represents you.) Have him propose a deal which will make him a little money and give you ownership rights or whatever plan you have in mind.  

Sometimes people dont listen for whatever reason.  But hearing it from an "outsider" sometimes makes all the difference.