All Forum Posts by: David Hagen

@Christi Hawkins Thank you!

@Elizabeth Nurnberger Thank you!  I was unsure of the white-on-white, but I love the result.  The biggest thing that sets the tiles apart is the raised bezel - it gives the wall a substantial texture.

My brother-in-law was the one that did the tiling, but he even admitted that it was particularly easy.  He had the tile saw needed to cut the tiles to size, so there was no added expense there.  The tiles were porcelain, which I'd recommend - they have a very solid feel on the wall and were pretty cheap at ~$3.50/sq ft.  The wall required 17 square feet in total.  It took him about 8 hours to complete from start to finish and I paid him $20/hr.  The most time-consuming part for him was getting the cuts and spacing perfect.

All in, for that part of the remodel I spent around $250.  I didn't get any quotes from contractors since we planned on doing this ourselves, so I can't comment to their pricing, but I assume it would have been more than that!

Good luck with yours, it sounds like a great family project!

@David Acosta Thank you, sir!

Thanks, Pat! I'll be looking at around $75-80k ARV -- not tremendous, but as I stated in the OP, negotiating a better purchase price is my main opportunity here. The next one will have a bigger spread.

Thanks, Joseph!  I'll provide more information in a PM coming your way.

Before and After Photos:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $54,000
Cash invested: $18,000

My first property is a single-family in a good school district for the area. The rehab was completed primarily by me and my brother-in-law, which included:

-Bathroom remodel with new flooring/hardware
-Kitchen remodel with repainted cabinets/new hardware/refinished countertop/subway tile backsplash
-New floors in all but the bedrooms (the carpet was still serviceable)
-Repainting/wall repair throughout

The property also has a 1-car garage and a fairly large fenced-in yard.

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

The BiggerPockets forums and podcasts were a huge push for me to pull the trigger and move on real estate investment. I'm primarily driven by the ROI of this type of investment compared to stocks/retirement accounts and the opportunity to improve something that I can provide to others for their enjoyment while making money in the process!

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

This deal was found on the MLS after waking up at 5am for several months before work to look at new deals each day. My approach to negotiation wasn't nearly as aggressive as I would have it now; I largely offered a price that worked for my numbers and the owners took it.

How did you finance this deal?

This deal was a conventional 30-year loan at 5.1% with a bank. After reaching out to a number of financial institutions I found one that was willing to let me deed the title into my LLC without triggering a Due on Sale clause, so I went with them.

How did you add value to the deal?

The house was remodeled to be modern inside -- new hardwood vinyl flooring, new porcelain tile in the bathroom after subfloor repair, refinishing of the kitchen cabinets and countertop, subway tile backsplash in the kitchen, new paint. Overall the house didn't need a tremendous amount of work, which allowed us to cut expenses on contractors and put the changes in place ourselves.

What was the outcome?

I'm extremely happy with the outcome! The house feels so much lighter and larger after the remodel and I received a tremendous amount of interest in the home as soon as it was listed for rent.

Lessons learned? Challenges?

I'll absolutely contract the work out for all properties going forward. I wanted to have context for what the work really takes, from material cost to amount of labor, to have a realistic picture of a financial and time commitment for contractors so as to not be taken to the cleaners with quotes.
I'll also negotiate much more heavily on my next opportunity. I've since read Split the Difference by Chris Voss and The Book on Negotiating RE by J Scott, revealing a lot of opportunity areas.

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

No, I was the catalyst for pushing for this. I was able to get a viewing and put the offer in through a realtor, but I brought the opportunity to him. If people skills aren't your forte and you really want results, put in the time to get the deal yourself! No one will care about your financial future as much as you do.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $54,000
Cash invested: $18,000

My first property is a single-family in a good school district for the area. The rehab was completed primarily by me and my brother-in-law, which included:

-Bathroom remodel (porcelain tile flooring after repairing damage to subfloor, repainting, new hardware on sink and shower)
-Kitchen remodel (repainting of cabinets, new cabinet hardware, new floor, subway tile backsplash, refinished countertop)
-New flooring in all but the bedrooms (Lifeproof hardwood vinyl planking)
-Painting/wall repair throughout house

The process took us just about 2 months overall to do on our own, but we made it! The finishing touches will be a new roof and gutters as the warm season kicks in.

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

The BiggerPockets forums and podcasts were a huge push for me to pull the trigger and move on real estate investment.

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

This deal was found on the MLS -- I found the offer after waking up at 5am for several months to look at new deals each day. The negotiation wasn't nearly as aggressive as I would have it be now; I largely offered a price that worked for me and the owners took it.

How did you finance this deal?

This deal was a conventional 30-year loan at 5.1% with a bank. After reaching out to a number of financial institutions, I found one that was willing to let me deed the title into my LLC without triggering a Due on Sale clause.

How did you add value to the deal?

The house was remodeled to be modern inside -- new hardwood vinyl flooring, new porcelain tile in the bathroom, new paint. Overall the house didn't need a tremendous amount of work, which allowed us to cut expenses on contractors and put the changes in place ourselves.

What was the outcome?

I'm extremely happy with the outcome! The house feels so much lighter and larger after the remodel and I received a tremendous amount of interest in the home as soon as it was listed for rent.

Lessons learned? Challenges?

I'll absolutely contract the work out for all properties going forward. I wanted to have context for what the work really takes, from material cost to amount of labor, to have a realistic picture of a financial and time commitment for contractors so as to not be taken to the cleaners with quotes.
I'll also negotiate much more heavily on my next opportunity. I've since read Split the Difference by Chris Voss and The Book on Negotiating RE by J Scott, revealing a lot of opportunity areas.

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

No, I was the catalyst for pushing for this. I was able to get a viewing and put the offer in through a realtor, but I brought the opportunity to him. If people skills aren't your forte and you really want results, put in the time to get the deal yourself! No one will care about your financial future as much as you do.

@Jay Helms This is a great question. I’m a bit of both, but I’m more introverted than extroverted. Something they I’ve found to be extremely helpful is to no longer say ‘no’ to opportunities. I’ve determined that the way to success for me is to speak publicly every chance that I get, which has improved my comfort level with it dramatically, and to seize every opportunity to try something new.

An inspiring quote for me was from BP podcast 276 with Bryce Stewart: “Vacuum the truck.” Take every opportunity that costs you nothing (like vacuuming your truck that you aren’t sure you can sell, even if just to show people) and you’ll only grow from it.

Good luck!