All Forum Posts by: Kristen Shook

@Ivan Melendez thank you!

@Jacob Sampson thank you for your insight! I won't be making any additions immediately, it I did turn this property into a student rental, I will come back at this concept later down the road. Adding another bath wouldn't be too difficult as I have an extra area attached to the kitchen that is for the purpose of laundry. It takes up quite a bit of room and I feel another bath rather than empty space would be ideal. Either way, these will happen once I'm more established and set financially. :)

@Kelly San Martín thank you!

 Thank you Dan, I appreciate it!

Great questions. 

I have not yet looked the cost and numbers the additions would take. I don't plan to make those additions immediately as I am waiting out the year occupancy and hoping to purchase my next property once that is up. I have saved up a very reasonable amount of money to be able to purchase a home in a similar way, low down payment. I hope to purchase a multifamily next, I am also floating the idea of utilizing a 203k loan to develop a multifamily. It will really just come down to the numbers and amount when the time comes. 

If I did add on, I would cash out refi and put it into the next purchase. I don't believe it would raise rent too much, but I do believe it would add value to the house if I sold. I honestly currently have my family living in the home with me, so it is *technically* still a house hack, with someone assisting with mortgage payment. That is the other reason I have contemplated adding a room and bathroom, I've got 5 people living here, including myself. If I do move out and on to the next property I would intend to put the additions and renovations on the back burner.

I plan to hold this long term, I have not yet checked the comps, in all honesty. If for some reason my family were to move out, I would run the numbers then. This would be later on down the road. The other reason for additions are that my original idea was to have it be a student rental and rent by room. 

Thank you for giving me the opportunity to reach out to Curtis. I appreciate your support and giving me questions that will allow me to gain perspective and really evaluate my position and pros/cons that could come with spending the money for additions. 

Hope all is well!

@Jonathan Feliciano

Thank you!

Of course, I did not have any specific filters set for search. The house just has 2 living areas noted in the details. One of the areas is pretty much a large dining room area and/or an addition that was made to connect the house to the garage, rather than having to walk outside to get into the house. I'm not too sure how the layout was throughout it's live span and I'm curious to see if that could be looked up.

My long term plans are to either allow my mom/family to live here long term and/or if those chose not to or ended up with different living circumstances, I would rent it out and hold. 🙂

Thank you for the questions.

@Nicholas L. You are right, I am just not sure what proper questions would be needed to asked to verify everything. The amount is specifically cash needed to close, all other funding and lending has been acquired.

@Kyle J. Thank you for your insight. Everything you mentioned is true and I don't have much experience. I really appreciate the possible issues that you've detailed that could go wrong. Weight possible down sides is very important when doing any kind of investing, especially lending.

Thank you, will do. 

Thank you for your response and input. He does have a track record that he has recently begun. After securing the duplex he is planning to purchase, this will be his 5th door. He also had an impressive BRRRR deal which I feel is noteworthy.

As far as your first question/statement regarding him reaching out to me for borrowing money, he recently let me know he has most of his money actively working for him in assets and properties. As he has been actively investing, that is why he looked to reach out for hard money loan. Knowing I want to make and save money, he reached out to me before others to give me the first opportunity to assist and lend. Everything will also be governed by notarized contracts. 

What are your thoughts? Although I do want to weigh the risks, I also want to be open to opportunities that present themselves.

Investment Info:

Single-family residence buy & hold investment in Topeka.

Purchase price: $69,000
Cash invested: $5,750

First Purchase!
Asking Price: $72,500
Purchase Price: $69,500
Appraisal: $75,00

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

My interest began when I found BiggerPockets and began listening to their podcasts daily. As I continued to learn, I set my goal of a first purchase being a Single Family Home with 3 bedrooms and room to build additions. Another criteria I had set was that it was within walking distance of the local University. I wanted to find a deal that was feasible for my budget and have potential for sweat equity. I saw this property and submitted an offer on it within 24 hours of it being on the market.

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

I found this deal by watching Zillow on a daily basis and having notifications sent to my phone. I immediately sent the property to my agent and he got me in to view within a couple days. As the market was just beginning to heat up and since the property was within walking distance of the University, I knew I had to act fast. I submitted an offer the same day I viewed the property. We negotiated the price down after inspections.

How did you finance this deal?

I financed this deal with a 30 year conventional loan with a 5% down payment and a 3% fixed interest rate.

How did you add value to the deal?

I have not yet added value to this deal, I plan to add another room or two and full or half bath. This will give me a 4 bedroom 1.5 or 2 bath.

What was the outcome?

My outcome was the ability to move out of a home that was not a good environment while also being able to provide safe housing for my mother and siblings.

Lessons learned? Challenges?

Lesson learned was to act fast when you have a good deal/opportunity. Trust your gut.
Challenges would be learning how to address items needing fixed prior to living/renting and finding contractors/companies.

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

The agent that assisted me was Theo Coney. He is an investor himself and has a great background. The lender I went through was Cassie Stephenson with Flat Branch Home Loans. These two were a big help in the process and I would highly recommend the two.