All Forum Posts by: Elaine Mejia

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000
Cash invested: $17,000

3 bed, 2 baths 1800 sqft 1.25 acres, renovated into 4 bed, 2.5 bath

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

We had just sold a property and wanted to get into another property that was a project for both my husband and I to work on to hone skills while working on a project together.

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

We had been looking at projects for several months while living in on-post housing, we didn't want to purchase a property for the sake of purchasing. We contacted a realtor to look at a couple houses after finding some that fit our criteria, we liked one and she mentioned that she had just received the keys for another property earlier that day.

How did you finance this deal?

100% VA Home loan and 100% cash for the rehab, we offered VA home loan and the seller was going as-is. We clarified with the realtor that the VA may require some repairs in the event that there was water damage or something that would make the house unlivable upon closing. The seller agreed as long as we agreed to the asking price, there was a patch needed in the roof and a door had to be replaced.

How did you add value to the deal?

Between the patch in the roof and the door, we also negotiated for the seller to finish the rehabs on the bathrooms. We did end up having to do some painting and sealing on the new tub and shower, but those items the seller had to do saved us thousands.

What was the outcome?

The project is still ongoing as the property was vacant for almost 3 years. The roof will have to be replaced in a couple years, but we factored that into the cash calculations. The land has been cleaned up, trees removed, and grass seeded. There are two 10X20 ft shed on the property that are in good condition but needed cleaning and paint. New floors, completely repainted, new appliances, half bath added, and electrical updated.

Lessons learned? Challenges?

We're continuing to learn skills to renovate properties. I am amaze at the difference a property makes when the land is cleared up- that alone adds curb appeal and shifts the perspective. The biggest challenge was closing as COVID-19 was hitting the population and beginning renovations on the property while preparing to reside in it and both of us deploying in the next year. The project is going to take longer but the plan is to purchase another property at the two year mark.

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

We started the purchase with a new realtor and her mentor ended up taking over, there was miscommunication between the realtor and the seller as to what agreeing to the VA loan meant to him and that caused him to sour which in turn caused us to have to repair and inspect the work that he had completed.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $280,000
Cash invested: $8,500
Sale price: $340,000

4 bed 2 bath 1900sqft, hot tub, was going to be a buy and hold shifted to a fix and flip 1.5 years in.

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

Purchased from a family member to help them sell fast while getting a deal and had been looking for a long-term rental.

How did you finance this deal?

70% bank loan, 30% cash

What was the outcome?

The market had climbed but rents had stabilized and we were going through the eviction process with the tenant, it was time to reevaluate the investment. We were moving out of the area so more rent would be eaten up by a property manager which would take us out of the 1% let alone the 2% rule, so the financially it made more sense to sell and reinvest the funds into a new project in the area we were going to live in.

Lessons learned? Challenges?

I learned more on managing tenants, the process of evictions, the process and plan of evaluating works but did get tweaked. Challenges were in making the decision to evict, it's never going to be easy but it was necessary. I am very glad we made the decision when we did due to the fact that the market has changed in the last couple months and that we were able to funnel the profits into a fixer-upper that we decided to move into while we fix it up.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $280,000
Cash invested: $8,500
Sale price: $340,000

4 bed 2 bath 1900sqft, hot tub, was going to be a buy and hold shifted to a fix and flip 1.5 years in. The market had climbed but rents had stabilized and we were going through the eviction process with the tenant, it was time to reevaluate the investment. We were moving out of the area so more rent would be eaten up by a property manager which would take us out of the 1% let alone the 2% rule, so the financially it made more sense to sell and reinvest the funds into a new project in the area we were going to live in.

I learned more on managing tenants, the process of evictions, the process and plan of evaluating works but did get tweaked. Challenges were in making the decision to evict, it's never going to be easy but it was necessary. I am very glad we made the decision when we did due to the fact that the market has changed in the last couple months and that we were able to funnel the profits into a fixer-upper that we decided to move into while we fix it up. We're saving $350 a month from what we were spending on housing even if living in the house while working on it has its own challenges.

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

Purchased from a family member to help them sell fast while getting a deal and had been looking for a long-term rental.

How did you finance this deal?

70% bank loan, 30% cash

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,000
Cash invested: $8,800

3 bed, 2 bath 1100sqft

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

I was returning from a back-to-back military deployment and had been researching budgets and properties while watching the market recession from the outside. The property was a foreclosure and I wanted to become an investor.

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

I had a friend take pictures and check out the properties for me while I was overseas, we would look over the deals together and decide if it would make a good deal. My friend walked me through the process to buy a home and acted as my eyes and ears, we offered the asking because the market was stabilizing and many housing were being sold for the same amount by large investors.

How did you finance this deal?

VA home loan and out of pocket for the rehab

How did you add value to the deal?

The house was 5 years old at the time of purchase: replaced all door (multiple had holes punched in), new appliances, installed a patio, and ceiling fans, laid new gravel, and security front door.

What was the outcome?

I lived in the house while rehabbing it and finishing up school in order to pay off the house, goal was to have the house as the safety net for future project. I rented it out 2 years later, one renter there for a year and the second renter has been there ever since.

Lessons learned? Challenges?

I used the house to learn how to do repair work and maintenance and how to care for a house, I traded with friends to learn basic plumbing, painting, electrical, and other up-keeping needs to happen. Budgeting for the house projects and financiing future projects were big lessons learned. I figured that if I needed somewhere to live then I might as well use it as a learning tool and project. Challenges were in finding out the things I didn't know I didn't know- still holds true.