All Forum Posts by: Holly McDowell

Welcome to the BP Community Carl!

My husband and I are seeking an equity partner for two real estate investment ventures.  I am a licensed Realtor in the state of California and Washington.  My previous experience in real estate investments is in buy & hold and short term rentals - all three properties were renovated.  My husband, Marc, is a general contractor/builder with 26 years of experience in New Zealand, Australia and the United States.  

We are open to two separate partners, or one with whom we cultivate a longer term relationship if all parties feel it is a good fit.  

We are currently looking for a property to flip in Orange and LA County (possibilities abound and we'd prefer to have a solid partner in place before securing a property).

Additionally, we have identified to lots for new construction in LA County.  Approximate cost to build would be $680k with resale at current market prices for new construction in that area at $1.3 to $1.5M.  The area continues to be a solid seller's market.  Even if the market balances, new housing is in high demand and we are not counting on market increases to make a profit.

Please message me if you feel our investment strategy might be a good fit.  

Thank you and have a lovely Thanksgiving Week!

Holly

I purchased the home in mid-2011 and sold Dec 2017.

Good Afternoon!

My name is Holly Birchall and I am a Realtor and a Real Estate Investor. I am married to a builder/general contractor, Marc.  

In 2011 and good friend of my opened my eyes to real estate investing.  She was generous with her knowledge - definitely an abundance mentality approach to life.  Later that year, I purchased two properties in the Phoenix area with my husband at the time.  Both properties were excellent investments in terms of cash flow and appreciation.  Life changes led to both properties being sold.  

I was HOOKED!  I loved real estate and finding good deals.  So on I adventured in my investment journey - this time into the short-term rental market via a house hack in 2012.  A single family residence was purchased with a unique layout that allowed me to create an apartment on the main level, poolside.  I got my feet wet in general contracting and learning how to tile and operate a paint sprayer.  The income goal for year 1 was $19k, actual gross income was $28k.  The expenses were very low simply because I lived at the property as well with my family.

By this time my friends and family were starting to request my assistance in acquiring their own investments (I was not a licensed realtor at the time).  

Fast forward to 2018 and it is time to start over in Los Angeles and Orange County.  Marc and I are specifically looking to invest in a fix & flip and new construction.  We are hoping to connect with like-minded individuals in the SoCal area to partner with as we begin this new chapter.  Once that ball is rolling, I plan to start investing in small multi-family properties, most likely out of state.

As a Realtor, I LOVE assisting clients with real estate investments.  Not much brings me more joy then finding a deal that makes money for my client.  I believe we can all be successful, and accomplish so much more when we work together.  

Have a wonderful week and many thanks to the BP community for all the information willingly shared.

Warmly,

Holly  

Investment Info:

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

Purchase price: $75,000
Cash invested: $30,000
Sale price: $206,000

This was a great little rental in a good neighborhood. Initially it was difficult to find good tenants - people were still loosing jobs in Phoenix at the time of purchase.

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

A good friend of mine generously shared her knowledge of the Phoenix metro area. The prices were great and the rent rates were stable - a win all around.

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

This was a short-sale property. Not much to negotiate at the time.

How did you finance this deal?

Traditional investment financing with 25% down.

How did you add value to the deal?

The house was in great condition at the time of purchase. I did a few updates in 2017 prior to sale.

@Jimi Smoot As other posters have already said - focus on the kitchen and make sure it is open concept. This will add the most value. If you choose to convert some of the garage space to living space, then be intentional with your design. In my experience, buyers don’t love additional living space that feels like a garage conversion. Will it flow nicely with the existing floor plan? Will it feel as if it is a part of the house? Regarding the division of one bedroom - is the total square footage of the existing bedroom 900 square feet? Or would each new bedroom be that size?

@Brian Olson Have you considered Walla Walla and College Place? The valley has a booming wine and food industry as well as three colleges (two private and one community college). The market as a whole there tends to trend about one year behind the Seattle market, and not have as large of market fluctuations.

@P B If your properties are long term rentals (30 days more is the WA state definition of long term) or fix and flip, then B&O taxes and filing does not apply. If you are operating an AirBnB or VRBO type short term rental, then you are expected to file an annual or quarterly tax return and pay the transient rental tax as well as B&O. Generally the income generated from this type of rental is below the minimum taxable threshold for B&O and it is all credited back to you on the same return.

Investment Info:

Single-family residence buy & hold investment in Avondale.

Purchase price: $81,000
Cash invested: $40,000

I purchased this house in 2011. The house is currently being renovated prior to prepare it for sale. I anticipate a list price at $250k. There have been a number of unforeseen repairs, which is somewhat to be expected after renting the home for 7 years.

How did you finance this deal?

Traditional bank financing with 25% down.

What was the outcome?

This home has been a very successful investment. Positive monthly cashflow and excellent appreciation.

Lessons learned? Challenges?

It is vital to have a good property management company. The first one I hired did not do well in vetting tenants - resulting in two evictions. The second property management company was substantially better. It wasn't until after the house was vacant that I discovered the PM was not doing annual walk-throughs. The result is lots of broken plumbing and a house in disrepair.