All Forum Posts by: Molly Edwards

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $265,000
Cash invested: $60,000

Currently in the process of remodeling this home. I will either list it once it is done or use it as a mid-term rental.

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

I enjoy the nightly rental process but my market is saturated with these types of properties. We have a large hospital in town that is severely understaffed. Due to the number of traveling nurses that are needed, I plan to market this property to them.

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

On the MLS. It had one sale fail and the seller needed it gone. They were selling for cash only which took many buyers out of the game. I wasn't scared to take on repairs needed and used that as leverage to get a good deal.

How did you finance this deal?

Hard Money. 15% down

How did you add value to the deal?

So much to list...new flooring, new windows, new HVAC, new cabinets, new countertops, new interior paint, decommissioned the underground oil tank, new electrical, some plumbing work. Furnished the entire thing with on trend furniture and decor.

What was the outcome?

Still working on this...more to come later

Lessons learned? Challenges?

FIND A GOOD CONTRACTOR!!! I cannot express this enough. I thought I made a good choice in contractor as I have know him for 20+ years and used him on other projects. I have learned the hard way to get EVERYTHING in writing, to check on their progress regularly and to have a plan for when the contractor is not holding up his/her end of the bargain.

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

Yes, the seller had an agent. She was great to work with and understood how bad the property condition was when I purchased.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $260,000
Cash invested: $65,000
Sale price: $320,000

7 unit apartment complex. Cash flowed $1,000 per month. Sold to 1031 closer to home.

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

Cash flow - I wanted something that would cash flow at least $1,000 per month. I accomplished this and then sold to reinvest closer to home.

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

I found it through a property manager that wanted to sell her own property.

How did you finance this deal?

Commercial loan, 25% down. Pulled equity from my personal residence for the down payment.

How did you add value to the deal?

Natural market appreciation

What was the outcome?

I doubled my initial investment in just over two years.

Lessons learned? Challenges?

It is hard to own property out-of-state but with a good property manager, it is very possible to do well.

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

No. I brokered the deal myself as I am a licensed agent and know the ins and outs of the paperwork and process.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $105,000
Cash invested: $24,000

Nighty rental in small town Missouri.

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

I already owned an apartment building in this same city and wanted a place I could stay when I am in town. I wanted another property for cash flow.

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

I found the deal on Zillow listed for-sale-by-owner. I made contact with the home owner and built report over about a 4 week period. Eventually the trust was built to negotiate a good deal on this purchase.

How did you finance this deal?

Conventional financing, 20% down.

How did you add value to the deal?

Cosmetic upgrades, professional photography, addressed small structural concerns.

What was the outcome?

I cash flow about $800/month. I feel like this is a good ROI as it gives me a place to stay for free while also bringing in money.

Lessons learned? Challenges?

With a nightly rental, your cleaner will be your biggest asset or detriment. Make sure you vet your cleaner well and check up on their work! Treat them well and compensate accordingly as they will make or break your success.

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

I worked with a lender that is licensed in multiple states which is important as I made this purchase from 2,000 miles away.