All Forum Posts by: David Thompson

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $28,000

House hack Airbnb Guest house

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

Living with no mortgage

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

MLS

How did you finance this deal?

Traditional Bank

What was the outcome?

We live in the main house and the guest house pays ALL expenses (taxes, utlities, insurance, ect)

Investment Info:

Office Space commercial investment investment in Harrison.

Purchase price: $200,000
Cash invested: $12,000

Purchased 2 commercial properties off the square in Harrison Arkansas

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

Needed a place for my Wife's Dance Studio

How did you finance this deal?

Bank Financing with a 50% grant for the down payment

How did you add value to the deal?

Splitting the property into 2 zones through the city and improvements

Lessons learned? Challenges?

This was my first deal and the income in a bit low. I could negotiated a better price on the property

We Purchased our House Hack about 4 years ago. 3 bed 3 bath house with a pool and with a 1 bed 1 bath guest house. It is located about 4 miles from the Buffalo National River, a very popular Vacation destination. 

We fixed up the guest house and pool for nightly rental, listed it on Airbnb! After all expenses we profit about 5K per year! 

Best thing we have ever done! 

@Account Closed Yeah I like to use this tactic because no one has to use money out of their pocket! Typically the seller is gonna be an equity check at closing so 2 or 3k doesn't really hurt too bad for them. But giving them to option to fix them verses giving you an allowance to fix after the closing is key! Also submitting the offer with an estimate from a well known plumber in the area will help them but it in perspective for them. Also you've done all the work for them to get a bid! 

Sounds like a great deal for a house hack! I don't know much about Michigan other than i hear property taxes are high so you had better be factoring that into you plan! 

The best thing about a house hack is that you were going to have to pay rent or a mortgage on a place to live anyway! This gives you a lot of room to make the mistakes in your numbers to learn from. Of course you should do your numbers and try your best to not just break even, but if you might screw up your numbers and you will learn! 

If I were you I would ask the seller to update the hot water heaters or give you a repair allowance at closing for the the hot water heaters! The 2nd option would not come out of the sellers pocket but out of their equity at closing. 

Get a plumber to look at them and give you an idea if they even need replaced and if so how much. Good luck!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $72,500
Cash invested: $30,000

2 bed 1 bath bungalow in the front and 2000 square foot Shop in the back!

Both rent for $650 water included

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

Perspective tenant and also a need to find a deal! Sometime you just have to make a deal happen!

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

It had been on the MLS for over 3 years. The 2/1 house needed a lot of work and the owner owed money to the IRS. I had someone in town that needed a ware house to rent, He loved it so I negotiated a deal with the seller to allow my tenant to move in before closing.

How did you finance this deal?

Borrowed $72500 at 15% down 5.75% interest from a local commercial banker. They agreed to lend 30k to rehab the project as well.
All in at 102500 - 15k (DP) $87500

How did you add value to the deal?

Comps were hard to find considering there was no other 2/1 with a 2000 sq shop building. So we valued the warehouse and the SFH separately rounding down to be conservative with the numbers

What was the outcome?

Tenant was already placed in the warehouse before closing and the rehab in the 2/1 was about $1000 over budget and about 2 months behind but all in all it was a great rehab!

Lessons learned? Challenges?

Budget for air units no matter what! and always inspect in the crawl space.

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

Anstaff bank
Joseph walker @ Harps

@Jason Lavender

Thanks!! I will!

@Jason Lavender

Looking a lender willing to 15% down that wants my business and has decent interest rates if you know one!!

I'm in Wichita Kansas today and tomorrow looking to meet up with an investor in the area!! I have experience with buying real estate and wanted buy some a meal just to ask questions about this area!

Thanks!!

So I am under contract on what I feel is going to be a great property! I am getting my financing lined up and I have  several options to choose from and wanted to know you guys think?!

A. 15% down 20 year 5.75 fixed Monthly cash flow $370.97 ($4457.69 per year) 30.39% ROI

B. 15% down 30 year 6.625% fixed Monthly Cash flow $403 ($4836 per year) 33% ROI

let me know what you think!! 

Thanks