All Forum Posts by: Hilary Stalder

Investment Info:

Single-family residence buy & hold investment in Winter Park.

Purchase price: $300,000
Cash invested: $65,000

3/2, 1850 SF single-family in A location with A schools in Winter Park, FL 32789. Partnered with in-laws on this project. We started construction 6/19 and we're attempting to get the house ready for rent in August to beat the school year starting. Depending what the market looks like when we are finished we may re-fi to recoup the construction costs. The property is worth in the low $400s once it's complete. Otherwise the property is interest only payments of $500. We expect to recoup construction costs in 5-6 years if we can get the desired $2400-2500/month in rent.

Purchase Price: $300k
Down Payment: $10k
Principal: $290k
Mortgage Payment: $500
Taxes/Insurance: $500
Lawn: $100
Vacancy/Repairs/CapEx: $360
Total Monthly Expenses: $1435

Total Expected Monthly Rent: $2400-2500
Total Monthly Cash Flow: $965-$1050

UPDATE 8/1/2021:
Rental Price: $3500/month (we were SHOOK!)
Total Renovation Price: $90,000
Cash Flow/Month: $1200 (refinanced loan)
COC Return: 13%

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

Long term wealth building.

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

My husband's father's friend passed away and his daughter lived out of state. The house was going to disarray (see photos) so he reached out to the daughter to see if she would want to sell. She did so he got the property for an excellent price. My husband's parents partnered with us on this deal and invested $80k. My husband and I put in the sweat equity and renovated the house. We went slightly over budget (10k) so we paid for that.

How did you finance this deal?

Originally seller financing with a balloon payment within 5 years. It has sense been refinanced and we plan to do another refi now that the renovation is complete and our rental price is wayyyyy more than expected.

How did you add value to the deal?

RENOVATIONS! See photos...

What was the outcome?

We rented for WAY more than expected. Rental rates went WAY up from when we started this project to when we ended, PLUS property values went WAYYY up. We are currently working on a refi to pull out some equity and re-invest in our next deal.

Lessons learned? Challenges?

Renovation costs were more than expected. The property was refinanced before we would have refinanced it as well leading to unnecessary closing costs. We will make sure we write out the financing plan next time before moving forward.

We're also splitting the cash flow every month. It would have been better if we could have agreed to a set % return. Maybe the next deal!

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

Myself! I listed the property on the MLS and leased it. Everything else was off market.

@Mya Toohey I think you meant $64,000? Looks like a great deal!

Hey @Pam Ryan, I'm no expert, but I would say you should sell the least performing asset. Sounds to me like the urban downtown condo may have a great view but isn't performing the way it should. Sell that to free up some capital. 

The Hawaii property sounds like you've found a way for it to perform even in COVID times, which is impressive. I would keep the properties that are performing and ditch the ones that aren't. 

By Florida standards (at least central Florida) you have enough cash to buy a place here (with a mortgage) and renovate for an attractive rental property. As long as you're conservative with putting aside repairs/cap ex/vacancy money, the mortgage will help your position (as it's more to write off during tax season). 

It may be a different answer if you're strictly trying to buy all cash. That may trigger the sale of your primary if you're trying to downsize/free up some capital.

Hope that helps! 

@Richard A. we haven't had an issue! Only thing I'll say with the click in is you still need to pay attention to any elevation changes greater than 1/4". It doesn't do well if there is a slope in the flooring, much better to do a break and a step. We made this mistake the hard way in our 2nd bath in the new place. Had to take out the flooring and grind down the floor to change the slope for a step. 

Agree with @Pat L. you need to pay attention to the mil thickness. We went with the thickest mil thickness for the money from lumber liquidators (https://www.lumberliquidators....) at 5mil thickness it's very durable. We've had it in our current rental for a year and a half and it still looks as good as day 1 (see bottom pic)! We installed over tile with larger grout lines too. We like it so much we're actually now putting it in our next property, first pic (https://www.flooranddecor.com/...). I think its a huge win for the price, low maintenance, and especially if you get waterproof, it's worry free AND it looks great. Make sure to get click in though because the glue down requires a TON of prep work. 

@Daniel Gibson since you're trying to rehab, why not do FHA and refi into conventional if you want to do another FHA in Chicago. I agree with @John Warren there're a lot of different options here! Talking to a good lender would be the first step. I have a few I can recommend in Orlando. Where are you looking in FL?

Investment Info:

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

Purchase price: $303,000
Cash invested: $60,000

My boyfriend purchased this house as a buy and hold/house hack. It's a little over 1500 sf duplex, each side about 750sf 2/1 units and it is a major fixer upper! We bought the house at $313k and did 3% back in closing costs to maximize cash in hand. The renovations will cost between $40-50k and are mostly maintenance/cosmetic (roof, add AC, flooring, counter tops, paint, trim, doors, etc.). We have a good list of reliable subs that will help us get this done.

We're hoping to have it up and ready for rent by August time frame at which point we'll also move into it. We're expecting the rent out the other side for $1350/month which will cover all but $600 of our mortgage. This will allow us to save exponentially more than ever before! Once we live in it for a year we will find something else to live in and rent out both sides for a cash flow of $300+/month.

The duplex is sandwiched in between two new builds and is also in an up-and-coming area of Winter Park, close to downtown Orlando and major highways (I-4), but also next to all that WP has to offer. Long term we'd like to build new. Once we own the land outright we should be able to build a luxury duplex such as the one next to us to either sell or rent, depending on which makes the most sense at the time. This is a 15-20 year plan.

Update October 2019: Rented Side 1 in August 2019 for $1400 (+ $50 for shed storage = $1450 total) before we moved in in September 2019. Had a major plumbing issue that set us back $3k but glad we knew about it and had the extra income to offset our little "suprise". Otherwise has been a great investment!

Update June 2020: Side 1 remains rented. We finished all our plans through living here with our saved income. Added a fence for a fully fenced in yard and added driveways to both sides. When we move we expect to list our side for $1500/month. The area can support it.

Update July 2020: Refinanced the property into a conventional loan for $380k, got rid of PMI and a few thousand in our pockets. New monthly payment will be less per month and rents in the area have increased so new cash flow will be around $550-$600 once we move.

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

Cash flow from 2 units under 1 roof

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

MLS

How did you finance this deal?

FHA financing with 5% down since we house hacked and lived in the house for a year

How did you add value to the deal?

Complete interior gut, added AC, new roof, facelift and added a fence

What was the outcome?

Refinanced in July 2020 for $380k

Lessons learned? Challenges?

This was our first re-fi. It's good to know that you must be at 80% LTV BEFORE getting any money out of the deal. The market conditions were ripe for a refi (low interest rate, good market) so we knew we had to take advantage. Luckily we weren't counting on any cash out for this deal, but it's good to know for upcoming properties.

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

No, we did not use an agent, but I am an agent so it helped us out to save that money on the purchase price.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $65,000

3/2, 1850 SF single-family in Winter Park, FL 32789. We started construction 6/19 and we're attempting to get the house ready for rent in August to beat the school year starting.

Purchase Price: $300k

Down Payment: $10k
Principal: $290k
Mortgage Payment: $500

Taxes/Insurance: $500
Lawn: $100
Vacancy/Repairs/CapEx: $360
Total Monthly Expenses: $1435

Total Expected Rehab Costs: $65k-70k

Total Expected Monthly Rent: $2400-2500
Total Monthly Cash Flow: $965-$1050

CoC ROI: 14-15%

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

I loved this property. I know we're not supposed to get emotional but it was difficult with this guy. When I found out my father-in-law bought it with owner financing and was paying interest only payments I knew the numbers may be different than my initial analysis. Sure enough, once the numbers worked we were all in! The area alone is worth the value in the land.

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

My father in law knew the original owner. He passed away and his daughter (who lived in DC) was trying to sell it. Because of the connection she was excited to sell it to someone she knew/trusted.

How did you finance this deal?

Owner financing. Interest only payments for 7 years, balloons at 7.

How did you add value to the deal?

We're doing a complete gut of the house. New roof, new AC, moving electric panel (fortunately electrical had already been updated and house had been re-plumbed), new flooring throughout, new kitchen, new M bathroom, updating 2nd bath. Full face lift. We're projecting this will take about $60-70k.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $65,000

3/2, 1850 SF single-family in A location with A schools in Winter Park, FL 32789. Partnered with in-laws on this project. We started construction 6/19 and we're attempting to get the house ready for rent in August to beat the school year starting. Depending what the market looks like when we are finished we may re-fi to recoup the construction costs. The property is worth in the low $400s once it's complete. Otherwise the property is interest only payments of $500. We expect to recoup construction costs in 5-6 years if we can get the desired $2400-2500/month in rent.

Purchase Price: $300k
Down Payment: $10k
Principal: $290k
Mortgage Payment: $500
Taxes/Insurance: $500
Lawn: $100
Vacancy/Repairs/CapEx: $360
Total Monthly Expenses: $1435

Total Expected Monthly Rent: $2400-2500
Total Monthly Cash Flow: $965-$1050

Can't wait to share pictures of this one. It's going to be quite the transformation!

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

I loved this property. I know we're not supposed to get emotional but it was difficult with this guy. When I found out my father-in-law bought it with owner financing and was paying interest only payments I knew the numbers may be different than my initial analysis. Sure enough, once the numbers worked we were all in! The area alone is worth the value in the land.

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

My father in law knew the original owner. He passed away and his daughter (who lived in DC) was trying to sell it. Because of the connection she was excited to sell it to someone she knew/trusted.

How did you finance this deal?

Owner financing. Interest only payments for 7 years, balloons at 7.

How did you add value to the deal?

We're doing a complete gut of the house. New roof, new AC, moving electric panel (fortuneatly electrical had already been updated and house had been replumbed), new flooring throughout, new kitchen, new M bathroom, updating 2nd bath. Full facelift. We're projecting this will take about $60-70k.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $65,000

3/2, 1850 SF single-family in A location with A schools in Winter Park, FL 32789. Partnered with in-laws on this project. We started construction 6/19 and we're attempting to get the house ready for rent in August to beat the school year starting. Depending what the market looks like when we are finished we may re-fi to recoup the construction costs. The property is worth in the low $400s once it's complete. Otherwise the property is interest only payments of $500. We expect to recoup construction costs in 5-6 years if we can get the desired $2400-2500/month in rent.

Purchase Price: $300k
Down Payment: $10k
Principal: $290k
Mortgage Payment: $500
Taxes/Insurance: $500
Lawn: $100
Vacancy/Repairs/CapEx: $360
Total Monthly Expenses: $1435

Total Expected Monthly Rent: $2400-2500
Total Monthly Cash Flow: $965-$1050

Can't wait to share pictures of this one. It's going to be quite the transformation!

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

I loved this property. I know we're not supposed to get emotional but it was difficult with this guy. When I found out my father-in-law bought it with owner financing and was paying interest only payments I knew the numbers may be different than my initial analysis. Sure enough, once the numbers worked we were all in! The area alone is worth the value in the land.

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

My father in law knew the original owner. He passed away and his daughter (who lived in DC) was trying to sell it. Because of the connection she was excited to sell it to someone she knew/trusted.

How did you finance this deal?

Owner financing. Interest only payments for 7 years, balloons at 7.

How did you add value to the deal?

We're doing a complete gut of the house. New roof, new AC, moving electric panel (fortuneatly electrical had already been updated and house had been replumbed), new flooring throughout, new kitchen, new M bathroom, updating 2nd bath. Full facelift. We're projecting this will take about $60-70k.