All Forum Posts by: Maurice Blackledge

@Kyle Smith Sorry just seeing your message. Let me know if you would like to connect and chat through some of your questions!

Investment Info:

Single-family residence hard money loan investment.

Purchase price: $35,000
Cash invested: $45,000

Found this deal from a local GC.

Purchase: 35k
Rehab: 45k
Duration: 5 months
ARV: 140k
Rents: 1200/mo
Exit: Cashout Refi

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

Great neighborhood and location for strong ARV compared to purchase price

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

Found this deal through a local GC. The seller was given the property through a trust from her grandparents. She did not want the house but didn't know what to do with it.

How did you finance this deal?

Hard Money Loan - Longhorn Investments

How did you add value to the deal?

Fix water issues, full cosmetic facelift, replace furnace, new appliances, flooring, paint

What was the outcome?

A cash-out refi, renter placed at 1200/mo

Lessons learned? Challenges?

Inspect what you expect( harder when you are out of state, so have boots on the ground you can trust). Always plan to go over budget. I had to let go of the GC halfway through the project which increased the budget and duration of the project. Get multiple bids on any project as well. Also, start the refi process before the project is complete so you can plan for any unforeseen circumstances that may delay your closing

Hi @Grace Walser, I am an investor based in Charlotte. Would love to connect. Welcome to the craziness of the RE investing market in NC!

HI Jason, If this is still available, I would be interested: [email protected]

@Aj Parikh its in between the Smokeys and the Nantahala National Forest in NC

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $275,000
Cash invested: $31,000

Cabin purchased for the purpose of using as a Short Term Rental

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

I had the goal of purchasing my first short-term rental in 3 months (starting Jan 1). I really like the cash flow potential of the STR market to help supplement income from Long Term rentals.

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

Found via Agent on MLS

How did you finance this deal?

With vacation homes you can do a conventional loan with 10% down, so we did that.

How did you add value to the deal?

None added yet, the house was turnkey and furnished and in good shape. We will make small updates to add personal touch but nothing too extreme.

What was the outcome?

N/A

Lessons learned? Challenges?

It may go without saying but always get an inspection done. Even in a competitive market, don't skip steps in the homebuying process!

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

Yes, I worked with an awesome real estate agent! I can pass her info along if you would like :)

Hi All,

I am closing on my first short term rental in a few weeks and we are planning to self manage it. The previous owner had a management company in place. The company/ house does have bookings that we have to honor within the 180 day mark.

I was wondering if anyone else has gone through this transition and if there are any specific questions you would make sure to ask or things to keep in mind when talking to the management company about the transition?

Thanks!

@Whitney Hutten thank you for the response and the insight! I arrived at the ARV from my realtor who had the area closer to 90 -95 and the Hard Money Lender who required a "subject to " appraisal which came back at 85k so I chose the lower amount. Good point though about reserves...I currently own a duplex that cashflow well but I also don't want to wipe out any profit by not planning for expenses on this property. The rents should be between 800- 825 but I chose 750 to be more conservative.

@Tim Herman thank you for the insight, that is a good point regarding capex and expenses. I hadn't thought of it that way so I appreciate that. I took just a general rule to use 5% but 50/month makes sense to me

@Ryan Howell thanks for the input! My Realtor ran comps around 90-95k...The Hard Money Lender required a "subject to" appraisal which came back at 85k so I just based my final number off that lower ARV instead. I dropped repairs to 2% because ill be rehabbing but that's a good point I should probably just keep that at 5 though.