All Forum Posts by: Josh Guild

Investment Info:

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

Purchase price: $45,000
Cash invested: $20,000

Two unit property I purchased as a package with a 3/3 across the street in 2017. Sold the 3/3 but still own this property. Currently rents for $950 for the front unit and $675 for the rear unit. Purchased this 2 unit property and the 3/3 for $90,000. Property had a decent amount of deferred maintenance. Put a new roof on, updated plumbing, minor remodel in bathroom/kitchens, new paint interior and exterior, and refinished existing hardwoods.

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

I had just finished my first single family property and got a tenant in place and was looking for an off market deal which this was. The property was close to the university and I thought I could get college students paying a premium rent.

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

Driving around near my house and near the university in Lubbock saw a for sale by owner sign and talked to the owner who ended up showing me a few properties she was willing to get rid of. For both properties (3 units) she wanted $120,000. We ended up settling on $90,000

How did you finance this deal?

Cash

How did you add value to the deal?

Through repairs and vacancy.

What was the outcome?

Profitable property with good returns. Ended up shifting my tenant focus from college students to a more wide audience. Had a few issues with tenant quality due to inexperience in real estate and land lording which resulted in good lessons learned. Have current front house tenant in place for three years.

Lessons learned? Challenges?

I underestimated how rough the neighborhood was and the challenges that would create during the remodel. Had issues with squatters and thieves including all copper water pipes stolen. Learned a lot about the remodel process and costs associated with an array of repairs. I learned college kids were higher maintenance tenants than I wanted as well as the importance of picking good tenants in general.

Does anyone have any experience with this? What does the permitting process look like? I've done this once before in Lubbock, Texas for an Airbnb on my own property but was ultimately told by the city I could not Airbnb the unit after operating for about 7 months. Does it matter if the property in question is zoned single family or multifamily (i.e a Duplex). Any additional information anyone could provide would be appreciated!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,000
Cash invested: $20,000

Bought in 2021 for $30,000, spent $20,000 on remodel. Rented for $1250 a month.

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

Had a friend who owned a rental property in Levelland who told me how low the supply of rental properties was. I also lived in the town over and was able to do a lot of the repair work myself.

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

I found this deal on Zillow. I saw the property had been listed for a while and decided to make an offer to see how motivated the seller was. House was listed for $40,000, offered $25,000, owner came back at $35,000. Deal done at $30,000

How did you finance this deal?

Cash.

How did you add value to the deal?

Completely remodeled the home. New roof, new HVAC, and all new electrical. House was taken down to studs and completely modernized.

What was the outcome?

Remodel took longer than expected but property has been leased for the last ten months @ $1250 a month.

Lessons learned? Challenges?

Material cost hit harder than I expected. COVID bottlenecks really hurt in regards to Lumber (New 3 sides of fencing), wire for electrical (New panel and all new wiring), new roof, and completely new HVAC. Home didn't have any attic space which created a challenge for HVAC and electrical. Next door neighbor turned out to be the town inspector so I learned to get comfortable with getting permits.