All Forum Posts by: Michael Shields

Hey Jessica, be ready to pay above asking, anywhere from 5-10%. We were putting in offers for the past few months and finally settled on a slightly distressed property. Good luck with it though, it seems like a promising area!

Hey Santiago, thank you! It seems to be a great area with a lot of growth potential. Square footage is just over 1600 and went conventional. Haven't reappraised yet. There are plenty of great areas with much lower price points than San Diego. San Diego still has a strong rental market, but very competitive and home prices continue to climb. We'll see how this one goes (hopefully well) and we'll continue to grow our portfolio in the southeast.

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $135,000
Cash invested: $50,000

My wife and I purchased a single family home in Huntsville, AL. Decided to go out of state due to how high costs are in our local market and how strong the market in Huntsville is becoming. Definitely a lot of firsts and mistakes that we are learning from and will update as we go.

Investment Info:

Condo buy & hold investment in Chula Vista.

Purchase price: $336,000

This home became part of the investment portfolio when my wife and I got married. Technically still hers, but it is now part of our portfolio. We lived in it for a couple years and then purchased our current family home.

Investment Info:

Single-family residence buy & hold investment in Lakeside.

Purchase price: $337,000

Purchased to live in and turned into a rental prior to deploying. My father currently lives in the home which has allowed my wife and I to make some updates. I met my wife prior to said deployment and we made plans for me to move into her condo when I returned.

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

Originally wanted a single family home with a decent yard due to my dogs. The lot is just under and acre and I liked being able to own a large plot of land just outside of San Diego, which is a predominantly densely populated city.

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

Found on the MLS and made an offer through my REA. The original house was built about 100 years ago and there were some additions and updating that occurred throughout the years. There was still some work that needed to be done to the home so I was able to ask the sellers for some funds to go towards repairs once I closed.

How did you add value to the deal?

Recently gutted almost entire house and updated everything. Inside is just about finished as of April 2021. One bathroom still needs to be updated and currently working on the front property as well as rehabbing and old garage on the property that wasn't being utilized.

What was the outcome?

Added equity and a happier tenant (my father).

Lessons learned? Challenges?

Taught us a lot about rehabbing and what it entails. Made us realize how much we can accomplish in a short amount of time and the value we can add to a home. Also drove us towards starting a handyman side business.

Investment Info:

Condo buy & hold investment in Lakeside.

Purchase price: $125,000

Purchased this condo back in 2013 to live in. This was my first ever home purchase and less than two years later I turned it into a rental property. Learned a lot and overcame many fears about becoming a landlord and real estate investor. I hired a property manager because I wanted to be as hands off as possible and it has worked out nicely for me in the long run. The property has more than doubled in value and it cash flows every month, which is all I really wanted.

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

I wanted to find a cheap place to live at the time and quickly realized how strong the market was after purchasing, both on the rental and ownership side.

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

I found this on zillow and made an offer through a REA. It was not accepted at first and I moved on to another property which ultimately fell through and the sellers of the condo called my agent and said their deal had fallen through as well and our offer was their backup. They countered at a little higher than what I had originally offered and I accepted.

How did you finance this deal?

VA loan.

How did you add value to the deal?

After moving in I did some minor repairs and added dual pane vinyl windows. Prior to renting, just a coat a of paint a good cleaning.

What was the outcome?

Good cash flow and great appreciation, as well as tax shelter.

Lessons learned? Challenges?

When I moved out of the condo I rented a studio apartment for a couple months in order to get renters in and be able to qualify for another loan. Two months later I purchased and moved into a single family home. I definitely did not need to do all that extra work and could've gotten a little more creative with getting renters into the condo. It was a poor move on my part but I created a great relationship with the landlord of the studio who I probably never would've met if I hadn't moved there.

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

The agent I worked with was a newer agent. I wanted to help him out and give him a chance. It worked out great for my condo, but he made a lot of mistakes for my single family home and I believe caused one deal to fall through. I was pretty upset so I will not recommend nor name him on here. I believe he left RE altogether though.