All Forum Posts by: Carter Still

Why do you think it isn't selling at or above break even price? I'd hate to advise risking more money on it, but it's at least worth exploring - are you FSBO or with a realtor? If realtor then what's realtor's take on why it isn't moving?

If you're sure that it's just not worth enough to sell close to break even regardless of a change in marketing/amenities/design then how long do you think it will take to get to that value? Even at loss each month it would probably take a long time to lose $60K renting it out. This is all assuming your refi can payoff enough of your short term debt. 

Only other question is how much would losing $60K hurt you? Would it take a long time to recover such that the loss is greater than $60K? 

Without knowing answers to those questions, if you can qualify for a refi that gets you close to breakeven, and you feel your market is healthy enough to appreciate to your original pro forma or better before you'd burn $60K then I'd just rent it out LTR. extra note: Each dollar of the $60K loss today worth more than each dollar of the cashflow loss in future years provided you obtain fixed financing until sale. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $124,000

Single family house with ADU - repaired and replaced EVERYTHING

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

low entry cost, awesome neighborhood that is in path of expedited appreciation (new construction popping up on every street), two units.

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

MLS - I am a realtor, it was July 4th weekend, we jumped on it and made an aggressive cash offer with quick close. Ask price was $195K and we got it for $124K.

How did you finance this deal?

Private loan then cash out refi to bank loan

How did you add value to the deal?

completely repaired and replace both structures. We focused on the ADU first, rented it while finishing front house to cover our accruing interest,

What was the outcome?

got 100% of our cost back, and nearly hit the 1% rule on rents. PP: $124K, Rehab: $170K, Appraisal: $378K, Gross Rents: $2750

Lessons learned? Challenges?

Hire out work, only pre-lease to flexible tenants for favorable rents (rents went up significantly during rehab)

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $328,000

Off market 4 plex in paseo arts district area

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

Opportunity for a full BRRRR in one of OKC's premier rental neighborhoods/expedited appreciation

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

Wholesaler brought it to me (found me on BP)

How did you finance this deal?

Private loan up front, Cashout refi to bank loan

How did you add value to the deal?

Added Hvac, cosmetic remodel of all units, new appliances, in-unit laundry, new driveway

What was the outcome?

Total cost $400,000, Appraisal $600,000, fully cashed out costs + a little extra in loan proceeds, fully rented all 4 units in 10 days

Lessons learned? Challenges?

First project in a long time that majority of labor was hired out. Project went faster, was on budget, and quality of work was great.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $139,500
Cash invested: $17,000

Purchased off market ($139,500), repaired and renovated entire house ($37,641), leased for $1350/mo, appraised for $200,000, took $160,000 loan.

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

in my neighborhood, off market, low inventory

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

got owner's contact via prop stream, called and talked to owner several times, finally met in person at house and came to a deal a week later.

How did you finance this deal?

100% private loan, 80% LTV bank loan + cash to payoff private loan

How did you add value to the deal?

cosmetic remodel of entire house + repairs to windows, floors, plumbing, Hvac, insulation, drywall

Lessons learned? Challenges?

Too much sweat equity! Hire out work to get it done faster, better, and sometimes cheaper.

I am purchasing an 8 plex from a seller who has lived in the building for 18 years. He will profit nearly $500K from the sale, and his biggest Hang up is taxes. 

I’d rather buy the property clean with one payment vs getting creative. Certainly don’t plan on guaranteeing this person my tax advice is correct, but wondering if the homestead rule applies here? (No tax on profits from sale of primary up to $250K for single/$500K if married). 

this question seems dumb if it were a large complex, but seems reasonable on an 8 plex. Please no 1031 advice - this seller wants to retire from landlording. Thanks In advance! 

@Ben Scott at that time it was sort of luck honestly... a GC connected us with an off-market deal to get work from us, while working on it an owner of two, neighboring duplexes (1 block from Paseo district.... so lucky), saw what we were doing and liked that we were restoring rather than erasing, and gave us a shot at buying his two vacant duplexes. We bought each for $195K in 2018. Now, I have an intentional effort to find new deals, and do so either by cold calls or networking with neighbors in areas I own property. 

Investment Info:

Single-family residence buy & hold investment in Oklahoma.

Purchase price: $175,000
Sale price: $200,000

A friend was moving out of state for a new job, and hadn't owned his house very long so didn't have enough equity to sell for a profit (after selling costs). He had purchased for $167K, and had a mortgage. We did a contract for deed, and promissory note, with 2 year term, based off of my PP such that my monthly payment to him covered his mortgage, taxes, insurance, and paid him some cashflow. For me, I was able to put $0 down, cashflow immediately, and about 18 months in I sold it for $200K.

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

No cash required

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

High level of trust between good friends allowed for an otherwise risky arrangement to run smoothly. Due to the no cash and 2 year term, I could offer seller a higher price than I otherwise could have, then I was able to reduce my basis via Airbnb'ing the property for 18 months, and then sold for $25,000 more than I bought for due to better than expected market appreciation.

How did you finance this deal?

Seller financing: Contract for Deed & Promissory note (5% interest, 30 year amortization, 2 year term, 100% LTC)

How did you add value to the deal?

Time. I bought the furniture, appliances, decor, kitchen utensils, etc... from my friend as a separate deal, used it to airbnb without much effort, took great care of the property for the duration of my ownership.

What was the outcome?

The friend who sold to me was able to build more equity and sell without any closing costs, and I was able to profit from cashflow and then sell for $25,000 more than my purchase price.

Lessons learned? Challenges?

Be creative! Track everything!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Oklahoma City.

Purchase price: $195,000

Duplex in urban core OKC. Purchased off market, put $56,000 into repairs and renovations. Started as an airbnb, but pivoted during pandemic and now have each unit leased long term for $1250/mo. Nets about $650/mo, and recently appraised for $324,000.

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

Off-market, traded offers with seller

How did you finance this deal?

Out of state partner paid down payment + closing + holding costs, bank loan for renovations and rest of purchase. Completed a cashout refi to get cash partner ~50% of his cash back.

How did you add value to the deal?

Cosmetic upgrades (refinish floors, paint, countertops, tile, vanity, toilet), Repairs of plumbing, HVAC, windows, water heaters. New Amenities of stacked W&D machines in each unit, added a second driveway so each unit has it's own parking

@Will Fraser in Helm Farm neighborhood

@Will Fraser I decided to post my investments today, but this one started nearly three years ago, so my memory is a rehab cost of $112K, and it took WAY too long at 8-9 months. I remember a 5 week period where literally no work was completed. Also, due to vacant house sitting so long, we had our condenser, line set, and detached garage's electrical wiring stolen.