All Forum Posts by: Dakota Beyer

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $9,000
Cash invested: $55,000

Complete gut and rebuild (everything besides studs and rafters

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

$9000 purchase price in B class neighborhood with ARV of $125,000

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

I was cold calling investors as an agent looking for listing and contacted and investor that said he would sell this house cheap. I went over and looked at it called him in the morning and he threw out $15,000 I told him I was going to start at $6,000 and end at $8,000 ended up settling at $9,000

How did you finance this deal?

Cash purchase with a construction loan

How did you add value to the deal?

Complete remodel. Sheathing, roof, windows, electrical, plumbing, insulation, etc...

What was the outcome?

We received a construction loan for $80,000 used $55,000 to remodel and purchased another deal similar. Termed out the loan at $80,000 on an ARV of $130-$135,000

Lessons learned? Challenges?

You make your money when you purchase.

Investment Info:

Single-family residence buy & hold investment in Cedar Rapids.

Purchase price: $116,000

Current Primary Residence

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

It is right next door to my first house.

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

When I purchased my first house I met all of the neighbors and told them if they are going to sell to call me and I would buy it. 4 years down the road they called me and we put the deal together!

How did you finance this deal?

VA Loan

How did you add value to the deal?

Negotiated a good purchase price

What was the outcome?

House hacked for a while and then decided it was time to live alone, currently under contract on the next primary residence and will cash flow $350/month

Lessons learned? Challenges?

Slabs and plumbing issues suck.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $79,000
Cash invested: $15,000

This was my first house and my intro into RE investing, I purchased this home from a friend's grandpa then did a rehab and started to house hack cash flowing $244 per month while living there. I ended up moving out and the turned over to a family that is renting $350-400 under market value. The tenants are fantastic always pay on time and keep up on the property. I ended up paying the mortgage down to $50,000 before having to refinance to recover from a business venture. $95k in equity still

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

My parents sold the house we were living in prior to purchasing a new one, I was staying at my grandparents and my friend I was working with at the time had said that his family was worried about selling his grandpas old house. I asked my dad to come look at the house with me. We both recognized it was a steal so I purchased it.

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

My friend brought the property up we made a fair offer that would close in 30 days and they accepted.

How did you finance this deal?

FHA loan since I was 19 and did not have much credit built up. I was working as a laborer for bridge construction so my income was good with 0 debt.

How did you add value to the deal?

Replaced floors, trim and painted.

What was the outcome?

I was making money to live in my house while making weekly net paychecks of $1000+ at 19 years old. I decided that I wanted to pay my house off, my minimum payment was $650/month while collecting $900/month. I decided to charge my self rent at $300/month and moving forward my minimum payment was $1200 often I would make $2000-$2500 payments.

Lessons learned? Challenges?

My biggest lesson I learned was when I moved out of state to start a co-working business I left my "friends" in place, they did not take care of the property and it started going downhill quickly (no cleaning, parties and one of them even was selling drugs out of the house) Kicked them all out and rented to a family and it has been smooth sailing since. friends and business don't mix well.

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

Not in this deal

@Derek Guivehchi that was my thought on it. I’m still new to this but if I remember correctly if you have the house for 2 years as a primary resident you do not pay income taxes correct?

@Lien Vuong I have been thinking about this as well I will do more research and let you all know what I end up doing thanks for the input!

@Anthony H. I am planning on a mix of both I have been reading a couple books saying if it has one door live in it don’t invest. I have about $10,000 in rehab at the moment and it’s a small kitchen and bathroom so about another $12,000 to contract that out.

@Victor S. I have put about 10,000 in rehab

I have my first house that I am planning on finishing the remodels do I flip or keep as a rental? I bought this house off of a friends grandpa that went to a nursing home. When I bought it it was way undervalued I bought it. I owe 64000 and as soon as I finish some odds and ends I think I can get it to appraise for $140-$150,000. I would like to rent it for $1200/month which would be about a 500 profit per month. I am wondering what most people would recommend doing and if so should I take the remodeling a step further and do a new kitchen and bathroom?