All Forum Posts by: Joel Brown

Anytime you can house hack and keep your head above water in Provo is awesome. There are lots who want to do the same and can't find the deal so congrats. I have a couple Provo condos but have yet to find a good house in Provo.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $77,420
Cash invested: $16,000

USRDA Foreclosure with hardwood floors. Cosmetic rehab plus new shower, electrical panel, and gas fireplace insert. Potential flip in future if rent rate decline

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

Great price for a very solid house in a great neighborhood

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

It was a government foreclosure. Bidders had 5 days to submit bid and 30 days to close with cash

How did you finance this deal?

I rolled a loan intended for a previous house and quickly qualified fro this new house (I ended up buying the other property with a home equity loan)

How did you add value to the deal?

We painted and did repairs ourselves and acted as general contractor for electrical and Plumbing updates. We modernized the outside and inside paint and furnishings (new gas stove, fireplace insert, and tub/shower).

What was the outcome?

Cash flowing ~$400/month and has nearly doubled in value since purchase

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

Realtor who became very knowledgeable about foreclosures

Venmo. Same company as paypal but totally free. 

I'm not sure about the rules in Texas but every state requires you to pay your fee yearly to keep it current with the state, so yes if you have Texas properties don't let your LLC lapse or if you get sued because of one of those properties, you will not have insulation from the tenant or plaintiff. You may need to pay a foreign corporation fee (out of state) in Missouri. (this is not legal advice by me, just my $.02 worth based on what I have done and heard.)

Did the beee sting ever get resolved? I'm allergic to bees and one of my neighbors has several hives.

Provo is a great place and will not likely drop much even in a downturn (I have 2 buy and hold rentals there now) Trying to cash flow any new purchases in Provo is extremely difficult unless you buy condemned property and rehab it all your self (and don't mind still paying $150/sq ft for that) There are to many wanting to pay too much and gamble on appreciation. I'm not playing that game but still keep an eye on the new listings. I think there are a lot better options for a better return. 

The city is cracking down on rentals and so we are seeing more that were rented illegally hitting the market. If they appreciate your taxes increase and you cash flow is further in the red. Great city though!

I believe Provo’s ordinance reads (Provo Code 14.06:)

"“Family,” unless otherwise expressly provided in this Title means:

(a) One (1) individual living alone; or

(b) One (1), but not more than one (1) at the same time, of the following groups of individuals described in subsections (i), (ii), or (iii) who together occupy a one-family dwelling unit as one (1) nonprofit housekeeping unit and who share common living, sleeping, cooking and eating facilities:

(i) A head of household and:

(A) All persons related to the head of household as a parent, child, grandparent, grandchild, brother, sister, uncle, aunt, nephew, niece, great-grandparent or great-grandchild by blood, marriage, adoption, guardianship, or any other duly authorized custodial relationship; and

(B) Not more than two (2) additional related or unrelated persons, including but not limited to, personal care or personal service providers; or

(ii) In R1 zones located within neighborhood areas described in Subsection (c) of the definition of “baching singles” in this Section, two (2) related or unrelated individuals and any children of either individual, if any; or

(iii) In all other zones, three (3) related or unrelated individuals and any children of either individual, if any."

@Derek Brown 

@Ashley White Campbell my property management group got me a reasonable rate ( less than half my first quote) for nearly identical coverage. Thanks. 

@Stewart VanValkenburg organized a meet and greet 4 months ago in Provo and he and I were the only ones that showed up. I live in Central Idaho but have 4 properties in Utah (2 in Provo) and would like to meet others interested in networking. My son  lives in Provo and also purchases real estate with me and would likely enjoy meeting and learning with other Provo investors.