All Forum Posts by: Charlie S. Webster

Thanks Keith! I posted the pre-renovation overview already and will post the results after complete. Which may take a few years

Investment Info:

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

Purchase price: $825,000
Cash invested: $94,000

3/1.5 SFH Fixer Upper. Received $15.5k credit, actual price $809.5k. House hacking with two roommates and self renovating the house, converting to 3/2, and converting Family Room and storage closet into Studio/1Bath. Adding Accessory Dwelling Unit with attached garage and workshop.

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

Military with VA Loan moved to Hawaii. Interested in forced equity/house hacking, and 2015 changes to Accessory Dwelling Unit laws. Home is on greater than 5k sqft lot within 10 minute walk to beach. Was the cheapest on the market that was really close to the beach.

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

MLS. Offered full price due to houses in Kailua VERY desirable and not on market long. Inspection showed new roof and minor termite damage. Asked and recieved $15.5k credit

How did you finance this deal?

HELOC on previous 2012 Short Sale investment and cash provided down payment. VA 10% down loan yielded lowest VA loan fee. Original rate 4.25% (would be 4.5% with recent rate hike). Bought down the rate to 4.0% from 4.25% for $16k due to intention to buy and hold original low interest on $730k loan with $3900 PITI. Will finance all renovations with a combination of cash, HELOC

How did you add value to the deal?

I intend to add/ create two units and multiple bathrooms, self renovate, and house hack with roommates. Additionally, considering adding a tiny house to the very large driveway for additional income.

What was the outcome?

Just getting started, will fill you in later

Lessons learned? Challenges?

Stick to your guns on counter offer. I stood firm on $15.5k credit after their $10k counter. They accepted my $15.5k request. It was a fair request.

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

Vickie Graham in Kailua was a great agent, video taping the entire property for me so I could buy site unseen in person.

Hey @Keith Shadle! I'm doing the exact same thing! I took out a HELOC on my condo in SD, moved to Oahu, bought a house, am quickly paying back what I used of the HELOC and getting started on reno, and am now looking for other markets to starting BRRRRing from afar. Let's keep in touch.

Investment Info:

Single-family residence buy & hold investment in San Diego.

Purchase price: $194,000
Cash invested: $30,000

One bedroom, one bath 2012 $194k Short Sale, appraised originally $230k, 5% down initially with PMI. PMI since removed. Appraised summer 2018 $350k.

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

I'm military and transferred to San Diego after the market crash specifically with purchasing a distressed property in mind.

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

Real Estate agent was offered before property placed back on the market due to previous buyer impatience awaiting Short Sale going through.

How did you finance this deal?

5% down conventional loan.

How did you add value to the deal?

I haven't. I have changed virtually nothing about the property, and I don't anticipate needing to. It was in good shape upon purchase.

What was the outcome?

I still have the property. After property management fee, PITI, and HOA, it cash flows $350/month. I have since taken out a HELOC which I used/am using to buy/renovate a single family home on Oahu.

Lessons learned? Challenges?

Cash flowing in San Diego is quite difficult. The only reason this property does is because I bought it at a low point in the market as a short sale. If you're investing there now, I recommend House Hacking a fixer upper and turning it into a multi unit if possible. I am doing this with my current project in Oahu, HI.