All Forum Posts by: Chloe Dawn Murphy

@Cassi Justiz

Thank you so much! I will do all of those things, very helpful 🙏

I've decided it's time to sell one of my rental properties. I'm excited about it's earning potential of 50-70k. It is currently filled with 4 female college students all with separate contracts that all end around August this summer. 

What do I need to do to help them feel taken care of during the transition of owners? 

I want to sell in 2-3 months. What are the legalities to selling before their contracts are up?

I want to keep them renting as long as possible, how should I communicate to the tenants throughout the selling process in order to do so?

Thank you for your help! 

I just read an e-book called Replace Your Mortgage by Michael Lush and David Dutton. It basically presents the home equity line of credit as replacement for your personal or business bank account. They say it works as long as you earn more than you spend. They have me hooked to the idea, but before plunging into a semi strange finance commitment I would love some beta on the topic.

I am at the refinance stage of my BRRR, I plan on renting it out for a few more years. I plan on selling it in 5-8 years. What does a HELOC look like as a rental, is it only smart to refinance your personal long term house into a heloc, or is this a tool I can use for all my future investments?

Anyone have any book recommendations on the subject?

The past two months have been wicked crazy.

I own a 3 bedroom 2 bath house that I turned into a four bedroom student rental making $314 in cashflow. I rented 3 rooms out while I lived in one for the past two years and had little to no problems other than washer and dryer issues. I moved out 6 months ago and hired a property manager in order to free up my time better. 

The past two months I have had to: replace the roof due to it leaking in the laundry room, fix major plumbing issues after the basement flooded, three of the four tenants gave their months notice the same day, manage drama induced tenant issues that lead to my first eviction, and now an hour ago I was informed that the power is out on the entire first floor for no apparent reason. 

Was I simply lucky the first two years and am now paying my dues? Did I hire the wrong property manager? I would come out even if I rented the entire place to a family, would the stress relief be worth the loss of cash flow?

I'm generally a fact based lady, but should I read the signs that theres some bad juju and sell out now at the top of the market with 70k in equity?

I would very much appreciate some realistic advice!

Investment Info:

Single-family residence buy & hold investment in Logan.

Purchase price: $169,000
Cash invested: $3,000

Bought a 3 bedroom, 2 bath house to rent out to college students. Quickly turned the extra living room into a fourth bedroom. Rented the home for over two years with no major empty rooms with consistent cash flow. After two years I've made 70k in equity, planning to keep it rented for a few more years before selling.

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

I honestly fell into this deal only by sure luck. I moved to Logan and wanted a place to live that was affordable and smart. I found this great home with good bones and move in ready. Two years later I've had consistent monthly cashflow of $100-$450 depending on if I lived there or not.

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

I found this deal through a few contacts of mine, we were able to negotiate it down 10k due to it needing a new roof.

How did you add value to the deal?

Turned the living room downstairs into a fourth bedroom. New paint and carpet. Refinished the wood floors under old carpet. Landscaped the front & backyard.

What was the outcome?

After two years it has made 70k in equity, I'm so happy with the outcome I'm ready to make my second investment of house hacking and fix and flip.

Lessons learned? Challenges?

Being a good property manager is key for keeping college students longer. Still so much to learn about managing, I would want to move over to renting to a family, but then I wouldn't have such a high cash flow. So many options to choose from and experiences to learn from.

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

Mary Murphy is an amazing loan officer she got me an incredible rate.