All Forum Posts by: John Andersen Schuck

So we've been in California for the past few years so if I were to take the advice of one strategy Brandon Turner suggested in his Rental Property Investing book, we'd probably need to try to 1031 exchange this thing for something larger with better cashflow.  Now that we have decent equity, I'd love to be able to manage a property locally but I don't think In SoCal I'll find a place for a good enough deal to make it worthwhile.  Since we just refinanced it with a 15 year note, a part of me wants to leave it in place and let it pay down fast and just pick something here.  

And we don't have documentable income at the moment so we'd need owner financing deals.  

Aside: man this forum is awesome!  Who knew how important it is to get feedback from others who are trying to do this as well and actively engaged.  Amazing.

Investment Info:

Single-family residence buy & hold investment in Beverly.

Purchase price: $215,000
Cash invested: $40,000

Purchased distressed property in 2008, upgraded it, lived in it for 2 years, then we have rented it out ever since.

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

The point of entry was very attainable for us and it had solid bones as a house. Minor upgrades yielded a good rentable house.

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

Found it through a local Realtor.

How did you finance this deal?

Originally it was on a 30 year fixed at 6%. Now it is on a 15 year note at 4.5%.

How did you add value to the deal?

Lots of sweat equity. At the time in our lives we did not have a lot of extra cash, so I spent a ton of time rehabbing the place.

What was the outcome?

Investment income.

Lessons learned? Challenges?

It is a great experience to be able to push through the 'demoralized' stage of one's first major renovations and see the house get re-appraised more than 20% higher that next year.