All Forum Posts by: Phillip Brown

Would love to see how this plays out.  Other than keeping up with the property is anyone else doing anything that helps protect themselves as the owner in these situations? 

 We use Wayfair too and it has held up great.  It really depends on the item, I spend time to read reviews too. We have saved thousands using amazon and wayfair for window treatments, light fixtures, bedding, etc...

 Agreed! 

I agree with the others above that being so far away I would keep the PM.  It will be a headache if cleaners don't show up, or you need contractors etc...We still have a PM being located in the same town.  We look at our numbers and what it costs us hourly to take on the job of managing it and if our time is better spent elsewhere.  

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $750,000
Cash invested: $65,000

Multi unit property, 2 homes on the lot. Front house rents for 2500 back house rents for 2200. Mortgage/insurance is 4000.

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

Rare multi unit property in my market in an area that is seeing good appreciation.

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

MLS, Negotiated with the agent, the home had multiple offers. We were not the highest, but kept terms favorable to the sellers.

How did you finance this deal?

5% down conventional financing. We have family members renting 1 of the homes, so we were able to use regular purchase financing and only put 5% down. So our monthly cash flow is low, but our initial cash invested was also minimal.

How did you add value to the deal?

flooring, paint, waterproofing, appliances.

What was the outcome?

sustainable long term rental

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $630,000
Cash invested: $100,000

Vacation rental in Corolla, NC. Found through MLS. Sellers listed with only 2 photos, photos showed the home to be much worse than it was. We offered day 1 on the market with a timeline on the offer.

Property is 3/2 on 1/2 acre with a pool in a great neighborhood

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

we had proof of production from family/friends in the area. We knew we wanted a beach house as a short term rental investment.

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

Found it through the MLS, negotiated on day 1 on the market with a timeline on our offer. This was May 2021 and the property was poorly marketed.

How did you finance this deal?

Second home financing, conventional loan

How did you add value to the deal?

Paint, updated decor and fixtures, added pool heater

What was the outcome?

House has great short term rental income, Pure cash flow of just over 10k a year.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $325,000
Cash invested: $72,000

Rambler on 1/2 acre in a good commuter location, near established rentals.

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

With the BP calculator, I knew it would cash flow well, and it is in a great commuter location that is experiencing good appreciation.

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

Found it through the MLS, offered on it within 2 hours of it being listed, set a timeline on our offer. Sellers accepted within 24 hours.

How did you finance this deal?

20% down conventional investor financing

How did you add value to the deal?

updated flooring and paint

What was the outcome?

Long term rental, mortgage is 1400. First year rent was 2250, second year rent has increased to 2500.

Lessons learned? Challenges?

This one worked out, but might be more weary of properties on septic as a long term rental.

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

I am licensed in this area, so I represented myself.

Investment Info:

Townhouse buy & hold investment.

Purchase price: $159,000
Cash invested: $11,000

Purchase Price: 159,000
Financing: 20% down Conventional
Closing cost: 4,000
Repairs/upgrades: 7000
Total Cash invested: 42,800
Mortgage/Taxes/Insurance: 780.00
HOA: 70
Rent: 1,500 3 year lease
Cap exp: 5% (75)
Maint: 5% (75)
Cash flow: $528.00
Cash on Cash: 15%

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

unusual to find a town house at that low of a price in the area that we wanted to have an investment property.

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

Through some contacts at a senior care facility, the seller wanted to move in to the facility but needed to sell quick for that to happen.

How did you finance this deal?

20% down conventional loan

What was the outcome?

bought in October 2019, rehab took 6 weeks, renter moved in Dec 2019, signed a 3 year lease.

Lessons learned? Challenges?

Contractors were unreliable, it was outside the area that my go to guys service and I had a few bad experiences with the contractors I started with.

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

My wife and I run a team in Northern Virginia, so I recommend us!