All Forum Posts by: Kao Saeteurn

@Pete Torrez congrats on your first STR! I'm surprised you're getting bookings during the summer here! Where are you located?

@Kevin Barnard

Jill makes a great point to deduct payments when they get paid every two weeks. This is a great option if it’s money management and you can help them out. If this is an option, this essentially gets you an extra month of rent a year if they pay every two weeks. 52 weeks/2 = 26 half payments so 13 full months payments.

@Joey Allison

Joey, I am looking to buy at auctions also. I see you went to UofA, did you buy at the auction in Tucson? Would be interested in the process first hand if you can PM about it. Thanks!

Good luck with the mold issue.

@Simon Dean is this an investment property, non-owner occupied rate or an owner occupied rate? I was quoted 4.3-4.4 for owner occupied but 5.125 for non owner occupied.

@Patrick Allen

Thanks Patrick! I’m looking forward to the next one!

@Kevin Phu

It was the down payment or our out of pocket cash. We got a loan from our parents so we were able to make a “cash” offer.

@Stephen Miller

Hey Stephen, looking at the numbers, if ARV and rental price is at your conservative estimates, you will still have cash left over on the deal after refi and you will not cash flow as much as you think when you consider CAPEX and vacancy. If ARV and rental price is on the high end, the deal may work. Good luck!

@Cole Black

I second George’s reply about the Air Force or Navy. However, to be a pilot, you’ll need to be an officer and that requires a college degree. It is very selective to become a pilot and it’s a 10 year commitment. You will be able to start your real estate investment career from day 1 of the military if you work everything correctly. You will need to caution on that because there is a decent amount of failure rates for pilots. Good luck! I am an Air Force aviator so PM me if you have questions.

Investment Info:

Single-family residence buy & hold investment in Tucson.

Purchase price: $170,000

Cash invested: $46,500

3/2, 1318 SF, corner lot, move in ready in a great school district and sought out neighborhood. Vinyl tile throughout the whole house. Low maintenance backyard and front yard. Had to do minor fixes and currently rents for $1275 and cash flows about 100 per month after PITI, HOA, CAPEX, MX, and vacancy. Will be thinking about updating the kitchen in the next 5 years or when the appliances start going out.

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

I have always been interested in real estate but after reading Rich Dad, Poor Dad, I got even more interested. A coworker told me about the BRRRR and BiggerPockets so I started checking out rental properties. I wanted a move in ready house with no hassles for my first deal.

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

We found it on the MLS and we got it essentially for asking price. Since it was a family loan we were able to offer cash for it and the buyer worked with us instead of the other higher offers.

How did you finance this deal?

Family loan at 0 percent interest definitely helped this deal cash flow.

What was the outcome?

A friend PCS’d into town and moved in on his first day. We have a six month lease and we are self managing because it is our friend and we figured it gives a good way to get our feet wet with management.

Lessons learned? Challenges?

Plenty of challenges. We did all the fixes ourselves which were not major fixes, but it took some time. However, we learned a lot and were able to feel the value of hard work. Will most likely hire out other stuff for our next deal.

We also learned a lot about the landlord tenant laws in Arizona. Did a great deal of research prior to get a lease to our tenant.

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

Yes, our realtor was Juan De La Ossa. He’s a great realtor and really knows the neighborhood. He was our realtor for the house we currently own and live in.

@Jesse Daconta

Hello, I just bought in Rita Ranch also but I am managing the property myself. However, my realtor recommended Rebecca Schulte with Keller Williams. She manages a couple of my friends rentals.