All Forum Posts by: John Wigglesworth

Investment Info:

Single-family residence buy & hold investment in San Antonio.

Purchase price: $76,623
Cash invested: $61,664

Three bedroom two bath property near Lackland with complete overhaul. The brand new shingles on the roof hid the rotted deck board tricked me, but the property still turned out to be a good investment despite the $7,000 lesson to always have someone walk on the roof. Property was rented 6 weeks before the rehab was complete. $1385 a month.

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

Price and location.

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

Called a wholesaler's sign. The wholesaler started at $90K but I picked it up for $76K. There were two layers of wholesalers when I first made the call, but then one fell off the contract making it easier to negotiate.

How did you finance this deal?

Paid for it using a HELOC on my residence. Took out an additional signature loan at 9% to cover $40K of the rehab. Refinancing now to pay back the loan and HELOC.

How did you add value to the deal?

New roof, foundation and plumbing. Cosmetically, all new paint, glazed some ugly bathroom tile, reworked the kitchen a little, vinyl plank flooring throughout, and granite countertops. For the size of countertops, the granite wasn't much more. Had fun putting up wood plank on the wall. This covered some bad bulges in the sheetrock and looks awesome. Amazon is the way to go on light fixtures.

What was the outcome?

House rented before we could finish the rehab.

Lessons learned? Challenges?

The previous owner replaced the shingles one year before the sale. However, the deck board was rotted. Didn't discover the rotted deck board until after the purchase or I may have negotiated more. Still got a good price and sometimes one has to pay to learn valuable lessons -- don't just look at the roof, get up there. Foundation work is almost guaranteed on the northwest side of town. The roaches were so bad I paid for a one year service to ensure they go away (bombing didn't work).

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

Texas Prestige Property Solutions.

Investment Info:

Single-family residence buy & hold investment in San Antonio.

Purchase price: $100,408
Cash invested: $46,387

Was able to purchase with just $4K using a "Subject To." The home needed foundation and plumbing repair which shot up the repair expense. However, it was rented before I could finish the rehab at $1450 a month. About to refinance and get a large chunk of my out of pocket back.

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

The Lackland area properties can meet the 1% rule and have some good appreciation. That's not an easy combination to find in San Antonio.

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

Word of mouth. Friend of a friend found out I buy real estate and he had a nightmare rental to get rid of. Negotiation was over the phone.

How did you finance this deal?

Bought it with a subject to. Financed the repairs using a HELOC on my residence. Refinancing to get a little over half of my repair cost paid back to the HELOC.

How did you add value to the deal?

I replaced all the flooring with vinyl plank. It's more expensive than carpet, but a better long term ROI. I always change out all the outlets, light switches, hardware, and light fixtures for a clean new look. Everything is switched from old gold to a new brushed nickel, even door hinges. In kitchen, changed hinges, drawer pulls, and hardware, plus $500 for a used complete set of stain made it all look like brand new.

What was the outcome?

It was rented while we were in the middle of rehab. Went fast.

Lessons learned? Challenges?

When you raise a slab foundation, budget to replace half the driveway. Count on replacing a lot of the plumbing when the foundation moves. Lowes has some lower priced vinyl plank flooring that I like, but their install is more expensive than it appears. Moreover, I buy underlayment at Habitat for Humanity for half the cost of Lowes and it is good quality.

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

I used Texas Prestige Property Solutions. The owner is a general contractor but is hands on with everything, not just a project manager overseeing subs. He redid the front porch for a surprising good price, and it's unlike any railing in the neighborhood.