All Forum Posts by: Joseph Cooper

 The numbers say it all. The property is free and clear (no cost to me). It will rent for 1,000 -1,200 after renovations (12K-15K) The major benefit of sticking with the existing dwelling is that property taxes are low low low right now. I expect property tax to more than quadruple with a new home on the lot. The renovation investment allows this property to pay for future improvements. The more time it stays rentable the greater the improvements in the future.

Thanks for your response Gene.

Adding an ADU is a great suggestion. The idea had not even been considered. Thank you for your response.

For me nothing is too far gone. Call me optimistic but coming from a construction family I tend to see the potential in every home. The only time I get nervous is major fire damage. It just seems like there can be in detected issues that might pop up late in the project. Major fire damage is too far gone for me. Tear down and rebuild to get a predictable finished project would make me more comfortable. 

I like the ones nobody wants to touch. True it always takes longer and costs more than expected. My opinion is that almost any home can be brought back to a glory filled life and generally at a better value than rebuilding.

take a look at the pictures below. This is a 1964 single wide mobile home with a couple of framed in poaches on 1/3 acre. It looks bad. The roof needs a little repair and the entire thing needs to be redone. However, since it is in CA there are a lot of hoops to jump through to remove it and build on the lot. There is water power and sewer. 

Being a buy and hold guy the potential rent will cover the repairs in 1 year and in 5 years would pay for a replacement or in 10 years pay for a new traditional construction home. The increased rent on a new home would take 20-30 years to pay off. 

Would you update and rent, remove and replace/rebuild or run away and take a long hot shower.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,000
Cash invested: $54,000

1200 sqft 2 bedroom 2 bath 60x18 garage/spare room

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

This was the cheapest house in the neighborhood in the past 10 years. The large garage has potential to convert to an ADU

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

Realtor.com

How did you finance this deal?

Conventional

How did you add value to the deal?

Not much. New heating and air included in deal paint and fixtures

What was the outcome?

Rented 100/mo cash flow

Lessons learned? Challenges?

Preparation is key. Closed in 20 days

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

Colleen Henninger Leana Teschner

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $529,000
Cash invested: $29,000

Multi family home on 5 acres in North Kohala area on Big Island Hawaii. Purchased as distressed home, made improvements, and rented to single or multiple tenets . Manage for the first 2 yrs and then hired a property manager.

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

I love a diamond in the rough. This property has so much potential

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

Craigslist - negotiated direct with seller at firs and closed with my real estate agent

How did you finance this deal?

Coventional

How did you add value to the deal?

Converted a covers poach to a 2nd bedroom. Turned the apartment above the garage to stand alone with a separate laundry and entrance. Flores paint fixtures

What was the outcome?

Cash flows 500/mo

Lessons learned? Challenges?

Took a long time. Was mor work than expected.

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

Kanoe Lindsey-Sores