All Forum Posts by: John B Clark

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $609,000
Cash invested: $300,000

STR using a PM. Monthly cashflow is estimated after all expenses.

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

Initially was interested in STR because we could also use it as a vacation home for our family when not in use by renters. Then, I saw the cashflow potential and possibility for financial freedom, and it kicked off my interest in property investing.

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

Found through MLS, and used an agent who is also a friend with lots of construction experience who also owns a couple of his own investment properties.

How did you finance this deal?

Financed through conventional 30 year fixed with about 25% down.

How did you add value to the deal?

Redo 2 bathrooms adding a shower to one that didn't have it, redid all flooring, painted inside, replaced rotting siding, new kitchen counters, backsplash and appliances, opened up a wall, and added a pool heater.

What was the outcome?

Lots of interest and good comments so far.

Lessons learned? Challenges?

I'm not sure I would have put as much money down or started with STR if I were to do it again. I probably would have started with some long term buy and holds, gotten the income from those, and moved on to more, possibly doing an STR later. This one is tying up lots of our capital due to renovations, high amount down, and needing to furnish it, thereby slowing us down quite a bit.

Congratulations!

@Brian Sigrest

Plus 1 for Proper - we went with them for STR also. They know what is required in your area and this is probably common, but you can pick the amount of lost income you want to insure against should something happen.

@Raj P.

I’m new to real estate investing, but not new to budgeting and finance. My wife and I had a fairly similar dilemma. In the end, we looked at the interest we’d be paying on taking on more debt (we are very debt averse) versus the interest our investment advisors are getting us in the market.

We were able to cash out refi for 2.75% whereas our investments have consistently averaged 8% returns. For us, the math makes sense to take on the debt from a cash out refi and continue to build wealth in the stock market, while simultaneously using our existing asset (our house) to gain wealth in a different way (REI).

Hi everyone, I'm new to this - about to close on our first STR, but wanting to branch out from there. Been researching and reading a ton, and zeroing in on our niche.

For me, I can analyze numbers - that’s easy (because of the education I’ve gotten from these forums and books!). I need a realtor with knowledge of the towns and cities in MA that can point me to potential deals and then has a good team of inspectors, carpenters, painters, Reno folks, etc. who can help me bring the house up to market so I can make a profit.

I had a realtor help me find our first investment and he was key helping me make connections to a very thorough inspector, attorney, flooring guy, painter, etc., and our realtor’s estimates for Reno work have been spot on so far because he also has a construction background and owns his own investment properties.

So, basically, ditto what others are saying, but most help needed bringing me the potentials and then answering questions as I analyze the deal for myself.

Just my 2 cents that might not be relevant for a lot of these more seasoned investors.

Hi Guys, sorry for my ignorance - I'm new to this (my wife and are about to close on our first investment property in a couple of weeks)…I generally understand what Arlen Chou wrote above, but when you say "put direct debt on that building", what is meant by that? Is that just refinancing that investment property in order to cover the money from the HELOC so you can pay back the HELOC and then do it all over again (I like "reloading the gun"!)? I guess my main question is - what is direct debt?

Thank your in advance!

Hi everyone!  My wife and I are set to close on our first short term rental in Plymouth in a couple of weeks.  I would love to meet more of you and share anything I’ve learned so far (not much), but mostly just get to know others who are doing what we’re hoping to get into!  Please add me to your meetup notifications, if possible.  We live in Waltham, but I can make the commute if family obligations allow (we have 4 kids).