All Forum Posts by: Greg Haygood

Investment Info:

Condo buy & hold investment.

Purchase price: $400,000
Cash invested: $100,000

My family purchased a vacation home that we could rent out when we're not occupying. It will cover approx half the carrying costs, plus market appreciation, and we have a "happy place" within a 3 hour drive for no additional costs.

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

I wanted an asset that could provide a convenient vacation option for the family that could also be monetized to reduce the carrying costs.

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

Nothing special. I used a local realtor. The key was searching during the off season.

How did you finance this deal?

Conventional mortgage

How did you add value to the deal?

Minor improvements to an outdated look.

What was the outcome?

The home booked for the season by the end of January.

Lessons learned? Challenges?

Vacation homes can make money during a pandemic (Or similar) if the travel costs to the destination are minimal. This home is driving distance from a lot of dense cities.

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

Doug Thompson Bethany Beach, DE.

Investment Info:

Condo buy & hold investment.

Purchase price: $400,000
Cash invested: $100,000

My family purchased a vacation home that we can rent out when we're not using it. It will cover approx half the carrying costs, and we have a "happy place" within a 3 hour drive.

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

We've vacationed here for a few consecutive years, and we love it. I wanted an investment that could provide the same satisfaction while also creating wealth for the family.

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

We found it during our 2019 vacation.

How did you finance this deal?

We used a traditional mortgage.

How did you add value to the deal?

We haven't added value. We made minimum upgrades and began to out.rent it

What was the outcome?

Before COVID hit, we maxed out the "high season" in January.

Lessons learned? Challenges?

TBD

Investment Info:

Condo buy & hold investment.

Purchase price: $644,000
Cash invested: $75,000

In 2008, my wife and I purchased our first home, a 1 bedroom 1 bathoom condo. In 2014, shortly before the birth of our first child, we purchased the abutting unit, and we created a 3 bedroom 2 bathroom condo in the heart of Logan Circle DC. We lived there as our primary home until this year, but we've decided to rent this home, a rarity in the city, and move to the suburbs.

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

The square footage and number of bedrooms are rare in downtown DC. Once my son was of age, we planned on moving to the suburbs to gain access to the school districts while monitizing our condo.

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

The same person owned both condos. After we purchased the initial condo, we took a shot at asking the owner if he'd be willing to sell the second condo a few years later. He said yes; we got lucky.

How did you finance this deal?

We used a traditional mortgage.

How did you add value to the deal?

We combined two one bedrooms to create three bedrooms and two bathrooms.

What was the outcome?

This will be our first rental property in the DMV (DC-Maryland-Virginia) area.

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $19,000
Cash invested: $45,000

Contributors:
Neal Mahoney

This was my first project. I bought it at auction, renovated, and rented, althought the latter two steps took awhile. l will refinance in 2020 and will reinvest the proceeds into another SFH in the same market.

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

I grew up in this house, and I noticed it went to auction, so I took advantage of the opportunity. The purchase price was low enough that I felt comfortable selecting this house as my first attempt. If everything went wrong, I could afford the loss.

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

A family member alerted me that the house was being auctioned.

How did you finance this deal?

I purchased the house in cash at auction.

How did you add value to the deal?

The home was pretty delapitated, so I was able to force equity by renovating and capturing the current market value.

What was the outcome?

After completing renovations, I found a tenant, and I will refinance the house, so I may use the proceeds to buy another investment.

Lessons learned? Challenges?

I initially chose the cheapest contractor, which didn't work out well. Shortly thereafter, I found my next contractor on Bigger Pockets, and I continue to work with him to this day.

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

Not on this project.