All Forum Posts by: Chris Svendsen

If need tree removal or brush Clean out I used Beaver tree services.  Super prompt, great price and did great work at removing tree, stump and debris.  No idea on actual landscaping services by them.  At personal home we used Elvira landscape services.  Did good work, fair prices, and got it completed on deadline we had plus they just outside of front royal so can easily cover linden.

I told them the truth. Was planning on using for renovations on an investment property and improving an investment property. Now my HELOC was on an Investment property we already owned so that may be why they had no problem with it.

Usually buying all my stuff at once at lowes or home depot to get money off with coupons and card.  Walmart a good place to.  Nothing fancy, just something nice, simple and clean.  We also leave them a role of paper towels, pack of toilet paper, dish shop, hand soap, and a new plunger.  Just things to make first night easier for them.  Oh and a pack of furnace filters and direction on when to change them.

Yes.  We make units like new.  We get quality tenants, low issues, and higher rents by making units look good.  My budy doesn't do anything for people, repairs bare minimum, has higher turn over and repairs and tenants that trash units.  I fully believe in a quality product attracts quality tenants and worth the few bucks a shower curtain cost.

Personally I would run. Flood insurance not cheap and a problem I just don't want to deal with.

Originally posted by @Grant Thompson:

Chris,

Really awesome story! Congratulations! We are working on our first deal as well, the momentum really starts to kick in and help scale the business.

What would say is your number 1 lesson learned so far?

Thanks for kind words. Best advice, be 1000% honest with yourself on numbers.  Even if self manage account for management fee.  Account for repairs, capex, etc.  Also whatever budget is be prepared for it to go up. 

I thought I would give a synopsis of what my wife and I's last 4 years have been as investors.  This is in no means a detailed how to, just what we did in general terms and has worked for us to this point.  Main purpose is to provide encouragement for others that it is possible.

Where to start.  We bought our first investment house after being turned down 2 other times from seller.  Each time they sold for more but buyers couldn't close deal. We paid 108k for house, had the 20% down from saving for 2 years prior and financed the rest.  We self renovated the home, took a year and about 30k of our own money.  Had home rented in first 2 weeks on market for $1450 a month.  We were happy and ready to do a second one.

About a year later we finally able to buy second property.  Was a small single family in a college town approved for student housing.  We purchased for $70k, did 20% down and financed the rest.  Rented for $1175 a month. All was good with house until COVID.  Then all went down hill but we took time of vacant to renovate bathroom and rented to a family for $1000 a month.  Reason bought house was in good area, was priced to point where if students didn't work out could revert to family home which ended up being a wise choice.  

Fast forward to March 2020.  We were able to get a house under contract for $80k in our town, great location, great house, was going to need full rehab but was going to be a great rental. Budgeted $70k for rehab, ended up costing $100k for rehab.  Due to having so much into it,and taking a year to do, we sold home and 1031 exchanged it into buying 2 other homes.  We got the $80k to purchase house from HELOC on first investment property, rehab money was from interest free HD and Lowes CC for supplies and personal savings and business savings from other rentals to cover cash needed.  Sold home for $330k.  Bought 2 houses outright with the money left after closing.  

House 4 was a townhouse, another investor fully rehabbed.  Had to pay what I thought was top dollar for house of $170k, but rented in 1 day for $1400 a month.

House 5 bought a house to rent to a family member and as a family gathering spot.  Paid 190k for house, used remaining money from 1031 exchange and additional money from family member to purchase.  Rent is only $500 but helping a newly married couple get a good start on life.  Covers our expenses and little extra.

Now if you followed along, we have 4 houses currently owned as rentals.  One with total debt of $165k  on it currently, one with about $60k on it, and no other loans on other 2 houses.  That puts total debt at about $225 plus need to repay ourselves from rehab and down payment purchases.  Houses values are as follows:  House 1 $300k, House 2 $90k, House 4 $180K, House 5 $200k.   House 3 we sold, thankfully which ended up being the perfect time to sell.  Total value is approximate $770k. We working now to refi and pull out equity.  We will have 3 houses with about $450k debt, about $200k in our pocket from cash out which will repay us and then put to work to buy another property.  Plus the debt set at 30 year fixed at 3.125%. Unreal on a rental for us.  We were at 4.625% before.

Everything you hear on podcast and forums is true.  If buy right, run numbers right, work hard, and persevere this can work out great.  We by no means millionaires, but that first house gave us the momentum and funding to move forward over the last 4 years.  Once we get the interest free CC paid off and secure the cash out ReFi's we should be able to have no money of ours into any houses, cash flow a couple thousand each month, and continue to grow.  There were many ups and downs but overall been a good thing.  One thing I have learned in this journey is any time I show my wife a house and tell her how great a opportunity it is, and she tells me I am crazy, I know I am on the right track.  Every one she told me it a bad idea she wakes up the next morning saying "You know,I was thinking about that house... " I showed her my next mission tonight, 3 different properties.  All she said is I am crazy, they will never work, we don't have that kind of money, they will never sell it to you for that price, etc.  I can't wait to make them happen.

Hope you find that first deal out there and move forward.  Ask questions we are all here to offer any advice we can give.  Have fun and good luck out there.

What are you using for interest rate on the mortgage?  Also your insurance might be a little low but depends on what would take to rebuild.  I am with Mason, put in a realistic rent dollar amount.  I usually try to shoot for middle of market in my projections.  If I get higher then all the better but not crushed if cannot get the very tip top of market.  That all said, every investor has different ideas of what they want.  I sunk $190k into a house that really only worth probably $165k, however saved me $50k in taxes and can pull out 70% of the purchase price in my refi so in end I am happy with outcome.  

Oh and make sure local zoning allows you to rent to students if not approved for them already.  Some towns do not like student housing in areas and not always easy to get approved.

I bought a unit that housed 3 students. It had one occupied, put in contract needed at least 1 more signed lease to close and I could market while waiting to close for a 3rd.  By time I closed had 3 students.  2 years later no students as area I am in market changed drastically and now more commuters going to the school and a massive complex got built right next to school.  Now rented to a family. Might ask yourself why empty so close to start of school and if can still profit if can't get students in it. Other than that advertise and make it nice.  Mom and dad love spending money on a nice place, not so much on a less than nice place.  They want to make sure the kids have a good place to live.