All Forum Posts by: Cameron Don Meals

Investment Info:

Single-family residence buy & hold investment in Reno.

Purchase price: $280,000
Cash invested: $16,000

I completed a soft remodel on my primary residence then rented it out via Airbnb while I worked out-of-state. I have been able to cover around 70% of my mortgage and expenses for the first year.

How did you finance this deal?

Conventional 5% down loan through local credit union

How did you add value to the deal?

New floors, paint, and roof

@Jennifer White

I just purchased my first SFR and learned that rehab takes nearly twice as long as expected and is nearly twice the cost. Also, if there is any work done to the property that is major (foundation, plumbing, electrical) make sure that the work was done by a licensed and bonded contractor and not the owner themselves.

I am learning this the hard way and will need to dig into pockets to fix a leaking pipe underneath the driveway :/

If it is not done by a contractor I would recommend severely discounting your asking price and knowing the capital it will take to fix if a problem occurs - which, often times does indeed happen.

Best of luck!

@Elena

@Elena Koyun How did it end up playing out for you? Were you able to get the price down or did the deal get thrown out? 

This thread has been incredibly helpful in deciding what concessions merit a price reduction. Overall, as it seems to me, you don't want the deal to fall through for trying to get compensation for things that were apparent when originally viewing the property. Makes sense. 

I am currently waiting for my inspection, and will negotiate purchase price depending on any bigger items that I couldn't obviously see. However, I will use the agreed upon repairs credit as fit.

Thanks for this thread @Elena

@Elena Koyunundefined

@Cary Crites Thank you for your response - It was reassuring. I suppose I have let the naysayers make me question if investing right now is a good move. Of course, the investment is worth while if the numbers crunched (conservatively) provide for a suitable cash flow. I suppose I will have to exercise more patience as I have only found few low-end cash flow properties when running numbers based on asking price. 

Additionally, thanks for sharing your "contributors to success" - Great food for thought!

@Bill Schrimpf I am looking to house hack a multifamily (likely duplex) with potential for 'value added' work i.e. basement that can be converted, underutilized space, etc. I am not looking to buy in at too much equity initially (5-10% down) and possibly sell or 1031 exchange after some years. Buy and hold is likely my path. I will just have to wait for a property that offers a return or value added potential I am comfortable with and will align with my long(er) term goals

Hello everyone,

My Name is Cameron Meals and I'm a newbie investor in the Reno/Tahoe area searching for my first house hack. The big question that has been festering in this particular market: Is a real estate bubble forming again? And is now a good/decent time to invest?

I have heard both sides - half of the people saying RE will trend upwards for several years given gainfull employment opportunities and a adventageous business climate along with a continued shortage of housing; I have also heard to wait to invest until around the 3rd quarter of 2019 when housing is more abundant and the economic trend demands a downward curve. 

Here are some insights from http://renorealtyblog.com/2018/07/june-median-sale...

Year-over-year median house price is $385,000 up 13.2% or $45,000 from June of 2017

Year-over-year home sales in June down 25% from 763 in 2017 to 590 in 2018 

Only a month and a half of available inventory 

Being my first RE venture, I'm very indifferent about the market and timid to buy into a losing situation. Im finding it difficult to find gross scheduled rents above 1% of listing prices.

 I would appreciate any insight from the community!