All Forum Posts by: John Graham

Just bought a short term rental house on the lake in Gainesville GA.  Does anyone have a manager they would like to refer me to?  

Thank you Bruce for the advise, I will definitely read THE TAX ADVISER.  This subject is probably my most ignorant area of understanding for right now.  

I am aware that checking with multiple CPA's is important.  I am checking to see if there are any firms that specialize in reviewing tax documents, basically to grade a CPA's performance based on my investment goals. 

Is there a firm for investors that will look at my taxes and advise me if my CPA is doing the right thing for me as an investor. 

I am an established building Contractor in Central Florida.  I mainly do remodels, but occasionally I do custom builds for clients.  I have the funds to build a few properties but the numbers don't add up.  With everyone in the construction field being slammed and the price of property at all time highs, it is almost impossible to build a house and make a profit.  I don't have to pay contractor fees and my wife is a realtor.  So should I give up on trying to build right now and focus on short term rentals or other REs? 

Investment Info:

Single-family residence buy & hold investment in Winter Springs.

Purchase price: $105,000
Cash invested: $17,000

Single family home, bought in 2010, refinanced in 2012 with cash out. Equity is about $150,000 but will hold on to this one for a while longer.

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

I needed a good retirement after I left the military.

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

I had a realtor looking for fixer uppers. I fount this one in a great neighborhood but it needed so much work no one else wanted it. As soon as I saw it I wanted it. The bank was asking $115k for it and I wanted to offer $80k. The realtor was upset and did not want to make the offer. A week later she told me the bank wanted it in writing. Settled for $87k.

How did you finance this deal?

I used a VA Loan with no money down. Then I refinanced it and took $19k out to pay off the amount I put into it.

How did you add value to the deal?

I renovated the entire house.

What was the outcome?

I eventually rented it out 100% since.

Lessons learned? Challenges?

I rented the house out to my wife's aunt. On one hand, I don't like raising the rent and I know my wife will probably not let me sell this property even though I have over $150k in appreciation. One the other hand, I have great tenants that treat the house like their own and they do their own maintenance. This house will be paid off in another 20 years with little to no money invested in it.

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

My wife is a realtor here in Central Florida.