All Forum Posts by: Shaun Hood

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $36,000

We bought this property off the MLS. The seller was in contract multiple times with previous buyers and the buyers all walked. This property cash flows over $400/month, and has appreciated about $100K+ since we purchased it.

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

Long-term wealth

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

The seller was in contract multiple times with previous buyers and the buyers all walked. The house was structurally sound, but the mechanicals were very dated and the property needed a minor facelift ($7K). We were able to purchase the house for a very good price because the seller was getting desperate and they were in contract on another home to purchase. The sellers needed to sell in order to buy their new home. We were able to leverage that into a great deal.

How did you finance this deal?

Conventional financing

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

I am a realtor in Columbus.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $165,000
Cash invested: $36,000

We bought this property off the MLS. The seller was in contract multiple times with previous buyers and the buyers all walked. The house was structurally sound, but the mechanicals were very dated and the property needed a minor facelift ($7K). We were able to purchase the house for a very good price because the seller was getting desperate and they were in contract on another home to purchase. The sellers needed to sell in order to buy their new home. We were able to leverage that into a great deal. This property cash flows over $400/month, and has appreciated about $100K+ since we purchased it.

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

Long-term wealth

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

MLS

How did you finance this deal?

Conventional financing

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

I am a realtor in Columbus.

Hi, Brantley.  We closed on the property 7/1.  It is very early in the game, but I'm pretty optimistic about what the property will do for us.  It was rented for most of August at a decent rate.  We have a couple rentals already booked for prime season as well.  It's too early to give you my thoughts or opinion yet.  Let's connect and stay in touch!

@Ken Latchers this is our first STR. We have a couple LTR in Columbus, OH, our hometown.

Hi Michael.  We have housekeepers and maintenance taken care of through our property manager.  Do you have experience or suggestions on who exactly might be an emergency contact?

Hello everyone! We have done a lot of research and preparation, and are in contract on a single-family home in Naples Park that we are going to use as a STR. We have a good team in place (realtor, PM, lender, contractors), and I feel very good about everything. I certainly don't know it all though...I'm reaching out to you for experience and insight on STR experience in Naples/Naples Park. I welcome your thoughts, successes, concerns, failures, etc. Thank you in advance!

Does anybody have anything in Naples, or any experience with vacation rentals in Naples, FL?

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $149,900
Cash invested: $3,000

We turned our long-time primary residence into a rental property. We bought two properties in the same year (2018), and this was the easiest way to invest less money to acquire another rental property. We refinanced the property in 2017, reduced our loan to 20 years, and got a 3.5% interest rate. It turned out to be a great decision!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $105,000
Cash invested: $25,000

My wife and I had the opportunity to purchase an off-market condo in Dublin last year. I did the real estate work for the transaction at no cost, and as a result, were able to purchase the property under market value. It was our first rental property purchase!

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

We wanted to get into real estate investing-- our style is "buy and hold." I have a mentor that has been investing in real estate for 20 years, and following many conversations, I got the itch!

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

I found this deal when a family member asked me if I would be willing to sell the property for them. I initially didn't consider purchasing it, but over the course of a week or two the idea came to mind. I gave them a market analysis of the property, and told them I would do the real estate work for free, if they would be willing to reduce the sales price by what the commission would have been. As a result, we were able to purchase the property at about 8% below market value.

How did you finance this deal?

We did a conventional loan and put 20% down, so as to not have to pay PMI.

How did you add value to the deal?

As I said, I did the real estate work for free, and in turn, reduced the purchase price by about $15,000. We created instant equity in the property, beyond our downpayment.

What was the outcome?

We've had a tenant in the condo for 9 months. It's a quality tenant that has no desire to move again-- we're hoping she'll stay for years. We cash flow $380/month on this property. It turned out to be a great first rental property purchase!

Lessons learned? Challenges?

Make sure to read through the lease with your tenants. It will help clarify things for both parties, and there will not be any "I didn't know that was in the lease" issues.

Thank you both for the feedback. Yes, to be more clear, I want to get the equity out of a rental property, in order to start using the BRRRR method to accumulate properties faster. It would probably be worth it to me to take a higher interest rate on the rental (previous primary residence), if I can get the cash to begin purchasing more properties.

I'm not sure what you mean by a "due on sale" clause, but I'm going to do some research on that.  Would you be able to expand on what this clause means, and the scenario where it might be something to look out for?  Is this clause typical with a cash out refinance?  Thank you!