All Forum Posts by: Collin Wallace

@Erik Browning

Investment Info:

Single-family residence buy & hold investment in Twentynine Palms.

Purchase price: $220,000

I purchased this property as a rent by room LTR for military personnel. I bought this home using part of my VA loan cap as a primary residency to live in and house hack the other rooms. I am currently bringing in an additional $450/mo after PITI.

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

It was a property owned by a co-worker. I knew the property well and the market surrounding the area. I primarily needed a home to live in for 2+ years and was tired of paying rent. I saw a huge need for rent by room properties and took the leap.

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

Co-worker. Was able to negotiate $0 down and the seller to credit $14,000.

How did you finance this deal?

VA loan

How did you add value to the deal?

Looking to aesthetically add value to the exterior as well as landscaping that will set the home apart from the rest of the neighborhood.

What was the outcome?

LTR, renting 2 out of 3 bedrooms bringing in $450 after PITI. Plan to rent out the 3rd bedroom after I live there for 2 years, bringing additional income!

Lessons learned? Challenges?

Doing a FSBO contract and not using realtors on both ends took a lot more time and effort than I expected for doing my first deal.

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

No agents, but I worked with a Veteran Marine and his lending team at United Wholesale Mortgage. They were extremely helpful and taught me things along the way!

Seems AirBNB is extremely saturated these days, unless you have a really unique theme standing out amongst others, it will be slow to rent. 

It seems you dont want to put a lot of capital in to change the theme of the home, (potentially repainting, refurnishing). 

Id run the numbers to run it as a MTR on FurnishedFinders first, then look to rent it as a LTR. Look at current properties in your area that are currently for rent to compare numbers.

I am new to REI but how can the federal government legally keep you from evicting someone? Why do renters have such crazy protection? It seems simple to me. If they cant pay rent, kick them out of your house and throw their things on the street.

 Had a tenant move in, lived in the home for 2 months, then decided she wants a small kitten. (Tenant is mid-twenties, probably just wants a companion) Nothing deceptive.  Im having her sign a pet amendatory clause for the lease agreement. But should I charge her more rent? Increase her deposit? 

I went through my car insurance company Progressive. Quoted $850 annual premium.

Honestly, if you can house someone here for $900/mo for 50 months without putting a penny into the property. You're doing well. Id have a formal inspection done. Pay the $750. It'll save you in the future

Also, as far as I'm aware, Joshua Tree is capped on their AirBnb/STR limit for their area. Although you can find 1-2 acres in Jtree for 15-30k, there is much cheaper land in Yucca Valley (10 minutes west of Jtree) or 29 Palms (10 minutes east of Jtree).

This could be a great idea ! I live 5 minutes from Joshua Tree and I know they currently have a huge plot of land (assuming their all AirBnb's) filled with 25-30 air streams, all identical with outdoor showers  lined up in rows on what looks to be 2 acres. I know the AirBnb community out there is pretty saturated and heavenly seasonal. Id check into occupancy rates during June-September. It gets up to 110-120 during those months.

 You could try to get a credit from the seller for the roof. When you have the inspection done, he will be able to tell you the estimate life remaining of the roof. If it bothers you, ask for a credit.