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All Forum Posts by: Jacob Evert

Jacob Evert has started 2 posts and replied 3 times.

Post: 1st home is now a rental

Jacob Evert
Pro Member
Posted
  • Investor
  • Huntington Beach, 92647
  • Posts 3
  • Votes 0

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $305,000
Cash invested: $160,000

First home purchase that I kept and turned into a rental after saving for a new primary residence. I've refinanced the property several times to take cash out for remodels of my homes I have lived in.

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

I knew owning rental property is a good wealth building strategy.

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

The house was owned by a family frined of my in-laws. We were able to negotiate the price off market.

How did you finance this deal?

I got a traditional 80% loan from Wells Fargo

How did you add value to the deal?

I totally renovated the kitchen, bathrooms, and finished the basement.

What was the outcome?

I've had the house fully rented from the beginning. I've always been able to find new tenants to move in within days of the previous tenant moving out.

Lessons learned? Challenges?

I have had several maintenance items come due in the last couple years. I wish I knew about this site before I pulled cash out. I didn't account for capEx or OpEx in my budget, so this deal doesn't cashflow right now. But I do have a lot of equity built up in the house.

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

Since this is a long distance rental now since my W2 job moved me to California, I have Windemere manage the property for me.

Post: How to get over analysis paralysis on the first deal!!

Jacob Evert
Pro Member
Posted
  • Investor
  • Huntington Beach, 92647
  • Posts 3
  • Votes 0

Wow, what a great thread.  I have 1 rental, it was a primary residence I bought in 2005.  In 2014 I borrowed from my 401k to use as down payment on a 2nd house so I could keep my 1st house as a rental.  At the time, I was very scared, but I knew the long term benefits would be worth it.  Both of those houses were rehab type properties, so to get over the fear, I started planning the work on the new place.  Hard to be scared when you're lining up painters, flooring guys, window shopping at Tile stores, etc.  I have since done 2 cash-out re-fis to pay for home renovations and enable my family to move to SoCal without having to sacrifice too much house...  In hindsight, I probably should have done more deals, but I didn't stumble on to this site until a few months ago after buying Brandon Turners book on investing in rental properties.  It's a good read.

Also, do you listen to the BP Podcast?  I think they just had a great show with a contractor, and they share some philosophies on what materials and finishes they like to have in their rentals.  You might want to have a listen and think about what additional rent, or quality of tenant you might get with some simple, but great looking updates to your property.  Granted I lived in and remodeled my homes as if I lived there (Because I did at the time!) but the quality of the work draws more and better tenants.  I've basically have had 0% vacancy from day 1 in 2014. 

I'm also considering going PRO, but Premium is for professionals like your sister who want to advertise their business to potential clients, so I don't think you need that.

One last comment after reading the thread, with Pro you get BP insights which also has a rental calculator, which I've seen demo'd by Brandon on his Webinars.  Sorry for the long post, it's a long thread and a lot of great advice being thrown around!

Post: Rehabbed personal home

Jacob Evert
Pro Member
Posted
  • Investor
  • Huntington Beach, 92647
  • Posts 3
  • Votes 0

Investment Info:

Single-family residence other investment in Edmonds.

Purchase price: $460,000
Cash invested: $150,000
Sale price: $703,000

Purchased a rehab property for a live in remodel.