All Forum Posts by: Krystin Habighorst

Investment Info:

Single-family residence buy & hold investment in Kenai.

Purchase price: $463,049
Cash invested: $172,424

The sprawling, 1,881 square foot open layout and tall ceilings of this ranch style home allow for proper entertaining. The gigantic back deck is perfectly situated with a gas fire pit for sunny days. Maintenance is minimal with a rock garden and tons of perennial flowers. Adding to this is the privacy from a master bedroom split-floor plan, so the other two bedrooms are across the house. Like any Alaskan, toys are a must and finally there's room with an oversized two car garage and a large combination storage shed and greenhouse.

While the investment wasn't perfect pricing, it was perfect timing for us to quickly move before the school year. This house was purchased with the intent to live in, then rent out later on, since we had an addition to the family for the rest of the year. The good pricing kicked in with the land associated in this deal: 2.66 acres with the house, then ~4 acres purchased with it at borough assessment value.

Lessons Learned:
1) Patience is a virtue! We could have waited and purchased something at a better price, but the 2021 Q1 housing boom tested us with 8 declined offers.
2) You'll spend more on a purchase for yourself than you would on an investment. Or, at least I will.
3) If you need to close ASAP, offer closing costs.
4) Be prepared to fix weird. I just discovered I can't live with green, white, and black mismatched tiles all in the entryway. I'm going to get really good at either painting or grouting.

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

We didn't have an option at the time. When you add an extra female to the mix, more space is a necessity! The duplex was cute, cozy, and affordable for the two of us but with a third person it does get tight. As this was all a surprise, I was fortunate to not have closed on another multifamily early on in the year. For now we will live comfortably in this home.

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

I used my realtor. I also offered full closing, and went $3000 above asking price. It wasn't much, but enough to get their attention at the right time. 2021 Q1 housing was crazy at this time, so anything less than asking would get declined in our small town. My other half found this house on the first day it was posted and viewed it with my realtor within a few hours. Our offer was immediate and accepted the next day when the sellers were overwhelmed with offers and viewing requests.

How did you finance this deal?

Rental property, conventional mortgage with cash from savings.

How did you add value to the deal?

We will be... updating the tile and bathroom countertops.

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

Annette Pankowski was my realtor for this. She's excellent and inspired me to study for my real estate license!

Revising an offer on a fourplex with 8+ years of deferred maintenance. Main CAPEX from the inspection is mold remediation (entire attic), ALL windows, and very likely the roof.

Concerns: 
Thoughts on how this will affect renting out units after repairs? Target market is lower income, family situations, and these units are at the higher cost end of it. What about resale since it goes on the report? I recognize this will be a high cash situation as financing is doubtful, but I have the finances to do it. Ideas on creative offers? I’m guessing this is a huge surprise and unfeasible cost for the current owner.

Hello! 
I'm a newer investor, and have recently gone under contract for a fourplex. The inspections shows LOTS of CAPEX needs, as it sounds like the last 8 years have been minimal or deferred maintenance on the exterior. Fun fact: The bathrooms vent to the attic, so needless to say the inspection shows organic growth up there too. Lots of it.

I’ve a few concerns: 

1. If the seller can’t finance remediation, is there an alternative for me to pay for it, stake my claim on the property, and yet still have him own/manage it (for all of the liability reasons)? Subject to comes to mind...?

2. Is it worth a possible remediation of 15 to 75K due to timing? Never seen this before... and it is fully rented right now. Also, I do have the funds available to accommodate this along with financing, but not if financing is relinquished due to mold (not sure if that’s a thing yet). 

3. How much is too much? In addition to this, all windows need replaced (egress and age). The roof will need to be reinspected when the weather warms up but has major ice dams and icicles already. Thoughts on this package as a whole? I'll obviously be offering less, but I think all the major CAPEX has been hit here! Within city limits so limited to contractors only as opposed to DIY.

Thoughts are appreciated!

Sounds like you've had a doozy already. Thank you SO MUCH for sharing! I've just purchased my first duplex and will be owner-occupying with a new, yet inherited, tenant for the next year. You've scaled QUICKLY - and I am (was?) looking at something similar while assets are available and the area's market costs are down. Any thoughts on reviewing tenants, scaling, and taxes during this first year while it's fresh on your mind? 

Or maybe you'll post a lessons learned here in a few months?

PS - I also agree on the buy and HOLD scenario. With a bailout price on the problem properties. 

Investment Info:

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

Purchase price: $410,000
Cash invested: $82,000

This is a 3200 SF, 6 bed, 4 bath, 2 car garage turnkey duplex with tall living room ceilings and nicer upgrades on lighting and staircases. There is radiant flooring throughout the townhouse styled layout. Even better - it's only a five minute drive into town.

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

After the divorce, I knew I'd feel more secure if I had someone else living nearby while I was working out of town for a month at a time. Downsizing from an overpriced lakefront SFH, this was an ideal situation. The aesthetics are nicer than a typical apartment complex, each side has a generous 1600 SF, and I fell in love with the feel of tall ceilings. This was a situational buy that was never meant to actually create an income.

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

Zillow. I negotiated the purchase with my realtor.

How did you finance this deal?

Personal savings.

How did you add value to the deal?

Buying under the tax assessed price.
Performing plowing and lawn maintenance.

What was the outcome?

TBD.

Lessons learned? Challenges?

1. Be willing to negotiate intangibles. I was able to trade repairs for earlier owner occupancy, rent free.
2. Be more vigilant in property viewings. Found several additional small items after owner occupancy had begun.
3. Don't be afraid to go lower than the taxed value. I was able to get the property $40,000 under asking price and $10,000 under the tax assessment value.
4. You can't deduct upgrades to the owner's side after purchasing. Upgrade first!

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

Realtor Charlotte Gaston and lender Sara Benner of Residential Mortgage were amazing and worked with my crazy scheduling and text-driven communication styles.

Investment Info:

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

Purchase price: $410,000
Cash invested: $82,000

This is a 3200 SF, 6 bed, 4 bath, 2 car garage turnkey duplex with tall living room ceilings and nicer upgrades on lighting and staircases. There is radiant flooring throughout the townhouse styled layout. Even better - it's only a five minute drive into town.

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

After the divorce, I knew I'd feel more secure if I had someone else living nearby while I was working out of town for a month at a time. Downsizing from an overpriced lakefront SFH, this was an ideal situation. The aesthetics are nicer than a typical apartment complex, each side has a generous 1600 SF, and I fell in love with the feel of tall ceilings. This was a situational buy that was never meant to actually create an income.

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

Zillow. I negotiated the purchase with my realtor.

How did you finance this deal?

Personal savings.

How did you add value to the deal?

Buying under the tax assessed price.
Performing plowing and lawn maintenance.

What was the outcome?

TBD.

Lessons learned? Challenges?

LESSONS
1. Be more vigilant in property viewings. Found several small items after owner occupancy had begun that could have been easily repaired.
2. Be willing to negotiate intangibles. I was able to trade small item fixes for earlier owner occupancy, rent free.
3. Don't be afraid to go lower than the taxed value. I was able to get the property $40,000 under asking price and $10,000 under the tax assessment value.
4. You can't deduct upgrades to the owner's side after purchasing. Upgrade first!

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

Realtor Charlotte Gaston and lender Sara Benner of Residential Mortgage were amazing and worked with my crazy scheduling and text-driven communication styles.