All Forum Posts by: Blake H.

On January 5th, barring any unforeseen issues, i'll officially close on my first real estate investment property! Since coming across BiggerPockets near the end of July I have become enthralled and dove head first into the world of Real Estate Investing. I am forever grateful for the knowledge I have gained through the forums, YouTube videos, and several books. I overcame multiple obstacles, opinions, and objections, and am thankful for all of them, as they each taught me something along the way! Lastly, it wouldn't have been possible to do this so quickly without the expertise of my team in Jacksonville. Excited to close and even more excited to continue to grow a portfolio! Whoop Whoop! Happy to share more details on the journey if anyone is interested, but more so just thought i'd celebrate with the BP'ers! :)

Sounds like getting an appraisal in less than 30-45 days in JAX is tough. Any help?

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $250,000
Cash invested: $25,000

Contributors:
Tyler Lauderdale

My first investment property under contract! Loving the experience im getting and excited to provide a quality home with quality management for a family in jacksonville. Can't wait to do it again!

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

I was interested in multiple types of deals but this was the first offer that was accepted.

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

I searched through the MLS each time my agent sent my updated listings. I was looking in specific zip codes at 4/2 properties with more than 1500 sqft. This really narrowed my focus enough to make searching an efficient process. I worked through an agent and discussed different offers until coming to the offer at 250k

How did you finance this deal?

Through a lender. Working on financing this as a 2nd home, 10% down.

How did you add value to the deal?

This home is rent ready so i won't have to add value. Although because there was so much competition I offered higher than listing price, knowing that with the appraisal contingency and the fact that the house should appraise lower than offer price, I could negotiate down a bit.

Lessons learned? Challenges?

I had offered lower than price on all my prior offers on other homes. Because the market is extremely competitive and I'm not a cash buyer currently, this strategy wasn't going to work for me. I am a rookie and learned how the appraisal contingency can be utilized strategically and that you're not absolutely locked in to your offer price

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

Joshua Pruitt ExP Realty. Great agent who has waited multiple houses for me before we got this one under contract. He's never not responded to phone call/email, and is an investor himself. He's been willing to help a rookie investor like myself, answering questions, and advocating for me to make safe decisions.

@Basit Siddiqi thanks for looking out. I found a really good contractor on short notice, must've gotten lucky

Looking for a contractor in Jacksonville to walk a property with an agent tomorrow after 230pm, or Friday before 9am or after 230pm. Thank you for your time

@Dmitriy Fomichenko does the cash out portion of the refinance loan go directly into the solo401k account or could that go to the individual somehow?

@Allen Maris appreciate you looking out. Yeah definitely not anything near us anywhere near that price point, which is why I'm looking in JAX, Florida. Lender did say that the fees were just title and escrow, but yeah I thought they were high too. It's that something to do with California again? Lol. My Lender licensed in Floridas fees were less than half.

The cash out would be from my primary residence, then I would use that towards a down payment on another property.

Something I forgot to mention that's making me more comfortable with the risk is the fact that another agreement for my primary residence is that the value of the home does not go up and down with the market. It only appreciates or decreases in value a percentage of the change in my neighborhood median income from the time I bought, 2012, to the time I sold... yeah my situation is crazy!!! But yeah, because my house shouldn't all the sudden lose value, if the market changes, I feel like it's less risky than a normal cash out refinance

@Chad Duncan part of the purchase agreement between the city and the employer is also that the employee must stay on title. Which is why I'm removing her and buying in her name with my income. We're not in any position to get kicked out. What I was trying to explain is that I can cash out REFI my primary residence, then use that amount as a down payment on an investment property. For example if I BRRRR and my refinance of the investment property after Rehab covers the cost of the cash out from my primary residence and rehab, why wouldn't I do that? Easier said than done but I think it can be done. Maybe I'm too much an optimist

@Blake Henderson and no buying in Florida

@Bruce Woodruff and such good advice! I've planted seeds with the wife, but for now she's opposed to moving away from family and i don't think I'll win that war. I even suggested we move with family into a multi family. Got her thinking but not ok with it just yet.