All Forum Posts by: Kayla Elliott

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $375,000
Cash invested: $18,750

This is our main residence (and first deal!) which we purchased for 375k in April of 2017 which was about 25k under market value and is now worth about 435k as of December 2018. We put some money (about 10k) into the renovation of the house and replaced all of the carpet with wood-faced tile as well as replaced the cabinets and counter tops in the kitchen, both bathrooms, and added a small dry bar area. The place is a 2 bed, 2 bath carriage unit that shares only one wall and sits above garages.

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

This deal was off-market when we picked it up. We found it because an offer we had put in on a different unit didn't get picked and our realtor reached out to the sellers realtor and asked if he had any other similar properties.

How did you finance this deal?

We utilized the Chase Dream Maker loan which was 5% down, 30-year fixed rate at 4.375%.

How did you add value to the deal?

Without realizing that this was our first "deal" we replaced all of the cabinets and counter tops with granite and top-of-the-line products. Given that we are almost ready to move out, I would have chosen cheaper materials. We also decided against replacing the carpet with carpet and instead opted for a sturdy tile from Home Depot that imitates wood.

What was the outcome?

We are about to request PMI be pulled off from the lender as the house has appreciated in value to 435k from 375k in the past two years. Once that occurs, we believe that we will be able to rent the unit at cost or slightly below. We will plan on refinancing every two years to bring the monthly payment down so that way there is more room for cash flow.

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

Highly recommend John Babai from Meridian One. He always had our best interest in mind and being a first-time home buyer, he made the process about as easy as you could have by pointing out the flaws in all of the units that we saw, and explaining every last detail of the house down to the material, style of year built, etc.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $375,000
Cash invested: $18,750

This is our main residence (and first deal!) which we purchased for 375k in April of 2017 which was about 25k under market value and is now worth about 435k as of December 2018. We put some money (about 10k) into the renovation of the house and replaced all of the carpet with wood-faced tile as well as replaced the cabinets and countertops in the kitchen, both bathrooms, and added a small dry bar area. The place is a 2bed, 2 full bath carriage unit that shares only one wall and sits above garages.

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

This deal was off-market when we picked it up. We found it because an offer we had put in on a different unit didn't get picked and our realtor reached out to the sellers realtor and asked if he had any other similar properties.

How did you finance this deal?

We utilized the Chase Dream Maker loan which was 5% down, 30-year fixed rate at 4.375%.

How did you add value to the deal?

Without realizing that this was our first "deal" we replaced all of the cabinets and counter tops with granite and top-of-the-line products. Given that we are almost ready to move out, I would have chosen cheaper materials. We also decided against replacing the carpet with carpet and instead opted for a sturdy tile from Home Depot that imitates wood.

What was the outcome?

We are about to request PMI be pulled off from the lender as the house has appreciated in value to 435k from 375k in the past two years. Once that occurs, we believe that we will be able to rent the unit at cost or slightly below. We will plan on refinancing every two years to bring the monthly payment down so that way there is more room for cash flow.

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

Highly recommend John Babai from Meridian One. He always had our best interest in mind and being a first-time home buyer, he made the process about as easy as you could have by pointing out the flaws in all of the units that we saw, and explaining every last detail of the house down to the material, style of year built, etc.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $375,000
Cash invested: $18,750

This is our main residence (and first deal!) which we purchased for 375k in April of 2017 which was about 25k under market value and is now worth about 435k as of December 2018. We put some money (about 10k) into the renovation of the house and replaced all of the carpet with wood-faced tile as well as replaced the cabinets and countertops in the kitchen, both bathrooms, and added a small dry bar area. The place is a 2bed, 2 full bath carriage unit that shares only one wall and sits above garages.

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

This deal was off-market when we picked it up. We found it because an offer we had put in on a different unit didn't get picked and our realtor reached out to the sellers realtor and asked if he had any other similar properties.

How did you finance this deal?

We utilized the Chase Dream Maker loan which was 5% down, 30-year fixed rate at 4.375%.

How did you add value to the deal?

Without realizing that this was our first "deal" we replaced all of the cabinets and counter tops with granite and top-of-the-line products. Given that we are almost ready to move out, I would have chosen cheaper materials. We also decided against replacing the carpet with carpet and instead opted for a sturdy tile from Home Depot that imitates wood.

What was the outcome?

We are about to request PMI be pulled off from the lender as the house has appreciated in value to 435k from 375k in the past two years. Once that occurs, we believe that we will be able to rent the unit at cost or slightly below. We will plan on refinancing every two years to bring the monthly payment down so that way there is more room for cash flow.

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

Highly recommend John Babai from Meridian One. He always had our best interest in mind and being a first-time home buyer, he made the process about as easy as you could have by pointing out the flaws in all of the units that we saw, and explaining every last detail of the house down to the material, style of year built, etc.

@Mark Waite what would you say is the percentage of homes on county sewage? 

@Patrick Franta great tidbit! Thanks I will keep that in mind!

@Jafeth Medina I'm a little bit biased, but I highly recommend the Hydrocor zeta unit. It's a zero sludge unit that I am personally bringing to market that requires no pumping and produces water clean enough (national standards) to water your yard/crops at. Message me if you would like more info. 

Take a look at some alternative treatment units to septic. Sometimes they are cheaper to install and maintain (no pumping or leach lines required) which might be a better alternative! I've know that Hydrocor units aren't affected by high water tables and the water can be hooked up to sub-irrigation. 

@Jafeth Medina have you ever looked into alternative treatment unit replacements? They are some low cost alternatives to septic tanks that do not need pumping or regular maintenance work which might be a cheaper option. 

Hey all, have you heard of the Hydrocor Unit? It might be a much more reasonable alternative to replacing septic or hooking up to municipal. 

Great info @Misa Kataoka! Thanks. 

@Mark Waite I've heard the same. Is it common to see cess pools out there still and are there any companies that have alternative treatment units in the area?

Hi Nick, 

I have heard that septic tanks have an average lifespan of 40 years, so an inspection would be a good idea. Some alternatives to septic might want to be looked into as well as a value add.