All Forum Posts by: Andrew Thomas

I was just shy of two years. Told my wife at the beginning of January 2020 that I was going to start investing in RE, closed on my first property Christmas week, 2021. 

Analysis Paralysis is real, as is the fear of risking that much money. My personality is more on the cautious side, especially when considering something as expensive as a house.

I looked at lot of other Zillow listings, ran the numbers in BP calculators, and personal spreadsheets, trying to find ones that fit for a LTR. Finally bought one to flip, but rehab took longer than expected. When it finished a month ago, the market / rates had changed significantly from when I bought. So, I ended up finding a renter, and am in process of looking for a refinance from the hard money into a 30 year fixed mortgage.

@Keith Miller , Clearwater called me back yesterday, and you are correct, they only loan for property in MT. 

Maybe I need to look for a long distance deal... I hear Montana is beautiful, "especially this time of year". :) lol 

Winter is WAY too cold for my southern blood though. We get snow about once a year. Maybe three inches, if it's a bad winter. :O hahaha

If I could go back in time, what I would do differently (allegedly) ...

1 - I would buy RE to wait. Instead, I waited to buy RE. 

2 - I would have found a renter for the mother-in-law suite of my previous home. Bought at 150k in 2007-ish near the top of the market. Wife lost her job, and we could not swing it on one income. Went to short-sale in 2011-ish. Now comps are well north of 300k. The previous owner had finished out the basement, including a small kitchen. It is near the interstate, less than 3 miles to the hospital and college, and near shopping areas. For a few hundred dollars of work & materials, we could have added a separate entry, making it a 1/1 apartment and rented it out, "ala House Hacking". If I had, we probably could have kept the house.

3 - When I first read Rich Dad, Poor Dad, I would have asked my landlord about his journey in REI. IIRC, he had six quadplex units where we lived, and may have had more units than that. That was over 20 years ago; he wasn't that much older than I was at the time, and he was already a full-time investor. I could have learned a lot from someone actually doing it daily.

Andrew, 
When you say "mid-term rental", are you talking about "travel nurse rentals", or something else? I only have one rental currently, and my first tenant signed this week, so I'm just getting started. 

I had thought about making this one an STR, but I didn't want to start with STR quite yet.

My wife has two dogs, and my daughter has one, so by extension, I have three dogs. :) lol 

I chose to make my rental "dog friendly". I did charge a "pet deposit" and monthly "rent", though the tenant doesn't have an ESA. This is my first rental, and as a 1950's ranch, it has the original hardwood floors. Hopefully, they are not destroyed. 

Speaking of destroyed, it's not just dogs or cats which can damage a house. The previous owner had a bird. The frames and sills of the original wood windows in the dining room and above the kitchen sink were mangled and splintered... "Polly is a naughty bird... Polly want a window!" 

I'm northwest of ATL in Bartow County. We've been growing like crazy. There's several MU dev going through various stages of review now. We need more housing here, so the county commissioner supports the growth. However, a lot of the residents surrounding each development are shouting "NIMBY". :) lol 

My suggestion would be to look around at other developments going up in the area and see who has their signs posted. Around here, there are usually signs around the property, listing the development name, the developer's company, etc.  "Coming Soon... Toxic Waste Acres, another Springfield Nuclear development".  :D

Often, I've noticed some of the contractors will also be listed on the sign, or have their own separate sign. Especially the site work / grading contractors. 

Also, look for a new subdivision which is still being developed, and talk to the resident sales weasel. Around here, I've seen some where the listing agent is also the developer, or at least on very good terms with them. That agent / broker would probably love the opportunity to work with you once the units are ready for sale.

Hey @Myrissa Nearman , I just got my first tenant earlier this week. The house had been vacant, and there wasn't a fridge or W/D. 

I found a W/D on local Facebook Marketplace. It looks to be in pretty good condition, but the plastic safety tab on the washer was broken, and one foot was bent from dragging around. It is about a year old, so I was able to order replacement parts on the GE website... I think the shipping cost as much as the parts did. :) lol 

For the fridge, my wife looked at FB Marketplace and found a few. However, the price for a used basic fridge was not much less than a new one if purchased on sale, so she suggested we look at Home Depot & Lowe's. Plus, unless the seller is a business, there's a risk they are dumping their problem appliance on you. 

Buying new, it is clean and fresh, and comes with a warranty. Best of all, I don't have to load it on the trailer, deliver it, unload it, move it in the house, and set it up. I have a Pro account, so the local store only charges $20 to delivery and setup... well worth it, IMO. :) 

We picked a 20 cuft size as they have three adults and three kids. We also added an ice maker, as the water line is already in place, and I didn't want their kids traipsing around the kitchen carrying full ice trays. I used to spill half the water when I was a kid. :) lol

We wanted white, as the cabinets, the stove, and the dishwasher are also white. I didn't realize how popular stainless steel had become; there were only a few white units to pick from, and the only "scratch & dent" units were steel finish, so we did pay "retail on sale" price.

I'm in a similar situation to the OP.

@Keith Miller 
- I just sent an email to Clearwater, but I noticed Opportunity Bank, Stockman's, and MECU are all in MT. Do you know if they are only doing business inside of MT? I'm in the Atlanta, GA region. Before I email all of them, I thought I'd ask if you happened to have already asked that question. :) lol

Go on YouTube, and look for the channel called "Reality Renovision". I think the guy's name is Jeff Thormon (Thorman?)

He was a contractor for years, and sold that business / retired, and now makes tons of video content. It's primarily intended for people who want to DIY renovations on their own homes. He shows ways to save money and do very good quality work, yourself. However, it's full of great info for people like me, who are getting "on-the-job training" for repairs and renovations, while doing their first flip... and it's good for understanding when it's best to call a contractor, and what to know when dealing with contractors. :) lol  

Anyway, I just saw he has a video about soundproofing. I haven't watched it yet, but if it is like his other content, it will be full of great, clear, and relatively inexpensive fixes.

UPDATE:
Closed almost one month ago, and haven't accomplished much so far. Christmas was a couple days after closing, and wifey wasn't keen on me being at the flip during the holiday. Mom visited from out-of-state for a few days. Didn't feel great either. By the time I started feeling better and holidays were done, it was back to the day job, and two weeks had gone by. 

While the temps were in the 70's between Christmas & NYE, I met with a plumber, painter, and landscaper. I also got outside window trim painted on the front side of the house, which is ground level, and which people will see. The back side of the house is 8-12+ feet above ground, so not as visible without a ladder. Temps have been too cold to paint. 

Inside, I opened a couple of walls on one side, to better visualize (I'm a "visual person") how things are built, electricity is run, etc. Currently, there's a 6' opening between the kitchen / DR area into the LR area. I'd like to "shift" that over about 3', closer to the fireplace, and close about 3' of the wall that is now open, adding a couple of interior dividing walls. This would provide a better "flow" inside (IMO), and possibly a "suite" for the primary bedroom. 

However, the wall appears to be partially load-bearing in the current configuration. I've contacted a structural engineer to schedule a conference, but haven't heard back yet. Haven't heard back from the other three contractors yet either. 

Have been working on layouts. Bought some track lighting for the kitchen. 

Meeting a Realtor on Friday. She's a friend from church, and loves interior design. She planned the renovation on the century-old farm house she and her family are moving into soon. Anyway, she's coming by to provide some ideas on renovations, colors, etc. As a Realtor, she's constantly in houses around the area, and knows what is popular with buyers, and what sells well. So, that is the current status of my first project.