All Forum Posts by: Angelo Aguirre

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $20,000

This was our primary home for 7 years. We just closed on a new primary (June 2020) home and converted this into a rental. We're excited to be able to have held onto this property. Great East Side location and close to interstate, malls, and grocery, all within 2 miles of this home.

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

Adam from CCL Management.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $20,000

This was our primary home for 7 years. We just closed on a new primary (June 2020) home and converted this into a rental. We're excited to be able to have held onto this property. Great East Side location and close to interstate, malls, and grocery, all within 2 miles of this home.

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

Great position on the mortgage and good appreciation over the last 7 years.

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

Found it while looking for our primary home in 2013.

How did you finance this deal?

Bank loan.

How did you add value to the deal?

Finished the basement, adding 400 sqft of living space and another full bath.

What was the outcome?

Rented out after 5 days listed.

Lessons learned? Challenges?

Using a primary home can be a great way to turn our previous house into a true investment property.

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

Yes, Lori Logan from KW helped find this house for us and qualified us for a program resulting in $23K as a second mortgage, meaning we did not have to pay it back as long as we lived there.

@Bill F., thank you for that perspective. That's a good point about sticking to the state laws, even though long, it does seem like the ultimate route that would need to be taken. I agree, it's hard to change behavior, and a command call would only be a verbal/short term fix but doesn't mean it would solve the problem. The eviction process would still have to happen. Thanks for the response!

SF 

- Angelo 

@David Pere Semper Fi brother! Exactly, and after your advice this morning, I did get a hold of him though FB and he promised to keep up from now on. I did mention his Command and how they would look at this, in a non-threatening way, which is when the entire tone changed, thanks again!

@John Underwood, thanks a ton! I really hope I can work with him, but knowing this is a huge weight off of the shoulders. I appreciate the help, and thank you for your service!

@Erik W., that makes sense the stipend is granted no matter if they own out-right, or if rent is cheaper they can pocked the difference. In fact, I am happy that military members are able to pocked the difference. I think it's smart in your example of rooming with buddies and splitting the rent and keeping the majority of the BAH. It makes sense, if you can swing that. In my scenario, it's a bummer because it's a member with his wife and kids. Again, I am happy he can +$200/mo over my rent, win-win for both. Thanks for the response!

@David Pere, I completely appreciate the bluntness! I am a former Marine .. reservist (I know, lol) so I kind of know how BAH works but never really collected it myself. I definitely don't like or want at all to call out our fellow brothers, which is why it sucks even more! They are a great family but maybe just not that great with fiances. Either way I'm super thankful for the response and I am glad there is something I can do when they are unresponsive. Much appreciated!

Hey BP, 

I know literally everyone is having rental collection issues or at least has heard of someone having issues. I'm curious if anyone has came across this issue: a US Military tenant, on orders serving a local military base, who receives a government stipend, Basic Allowance for Housing (BAH), but still does not pay rent. This stipend is +$200 after paying rent. Covid or No Covid (this issue began way before covid), what happens when someone receives such stipend from the US government but does not use it for that purpose? Does the military track rental status, on-time V delinquency, of its members there on orders? Does it have any requirements of living status of its members? 

Thanks for any help!

@Tchaka Owen, thank you for taking a look.

I was gauging on about 6% of the price paying for both agent's closing costs, but honestly I was not too sure about this one. 

Do you think it could possibly be higher? 

I am thinking rents in this area could go for $600 for the 1 bed rooms (16 of them) and $700 for the two bedrooms (15 of them). And $750 for the 3 unit. 

Total rents = $250,200 total rents/year. 

Based on this rental income estimate, it would be a good value at a $950K price but this is without knowing how much work each unit needs or which capital expenditures are due. With this amount of units, I'd make sure there are more coin-operated laundry. It is a USDA property and accepts rental assistance, I'm wondering if there are other tenants that could qualify for this type of housing. I do like this type of income. 

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