All Forum Posts by: John Harmon

@Jayson Hinkson Thanks Jayson, I'd love to check that out! Do you have a link you could share with the info?

@Michelle Lancaster Hi Michelle, like @Tesho Akindele said, many banks will ask for 25% down for an investment property, but keep looking. The 5th small, local bank I talked to this week offered 20% down on a 30 year fixed. Many commercial products offer 20% down as well, but are typically a 5 year ARM with a 15 or 20 year amortization, at least in my area. Also, if you are considering moving into the property to house hack, many banks will offer 5% down on a conventional loan, or 3.5% if you qualify for FHA. Good luck finding the product that works for you!

Hi All, 

I have to admit that writing this feels a little odd to me. I've been listening to BP and reading the forums for almost a year now and am very grateful for the knowledge I've gained, but posting something myself is way out of my comfort zone. However, one thing I've learned from this platform so far is that if you want to grow, you've got to get out of your comfort zone. With that said, here's a little about me:

My name is John Harmon and I've lived in the Aiken area for 4 years now with my wife, Mellissa, and daughter, Ryleigh. My day job is in the telecom industry as a Director of Tech Ops. We currently have one rental property and are nearing completion on a live-in renovation that will be rental #2. We hope to purchase at least 1 more property in 2021(maybe 2!). We plan to employ the BRRRR strategy once we've gained a little more experience investing in the area.

We've been blessed to be able to work with a great agent, lender, and property manager so far and look forward to connecting with other investors in town. Although I've not done many deals (yet), I enjoy analyzing deals and would be happy to give a second opinion on a deal you may be looking at, or help in any other way I can.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $137,000
Cash invested: $10,000

This is a 3br/2bath single family home in Aiken, SC.

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

We bought this as a primary residence before deciding to invest in RE and learning about BP. We decided to rent it out and move into another property that we could renovate and late rent as well.

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

We found this through our realtor and looking online. It had recently had a price reduction from $159,900 to $144,900. The sellers had moved out of state and the property was paid off. They were using the sale to help fund retirement. After a little back and forth, we settled at $137k.

How did you finance this deal?

We used a conventional loan and put about $10k down.

How did you add value to the deal?

We replaced the AC unit, updated the kitchen with new counter tops, hardware, and backsplash, and are currently having the siding and a few windows replaced.

What was the outcome?

This home is currently rented for $1,350/month on a one year lease. We originally financed this with a 15 year mortgage. Once the siding and windows are replaced, we plan to refinance to a 30 year fixed to improve cash flow. The current value is approximately $160k - $165k.

Lessons learned? Challenges?

We had an inspection during cool weather. The AC blew cool and the heat worked, but the breaker to the compressor was tripped(we didn't know at the time). There was nothing in the seller disclosure about a bad AC unit. We closed on the house and 2 weeks later, during the first warm day, found out the compressor was bad. We ended up replacing the whole unit to the tune of $7k. Thankfully, we had reserves to cover it.

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

Joshua Cline, an investor and agent in the area, helped us with the sale of our previous home and the purchase of this one. Matt Hunter at Hunter Mortgage brokered the loan for this house, along with 2 other purchases. He's extremely knowledgeable and easy to work with. Our property manager is Karen Clayton with Golden Ivy Realty. She's no nonsense and excellent at tenant screening. We are blessed to be able to work with such an amazing team!