All Forum Posts by: Nick Vought

Thanks Scott! Loved your book.  

Investment Info:

Single-family residence buy & hold investment in Salt Lake City.

Purchase price: $319,000
Cash invested: $25,000

Great little diamond in the rough. This 3 bed 2 bath 1100 sqft. house is in one of the most sought after areas in Salt Lake City in the 9th and 9th District. Mortgage is around $1,800 and am renting it out long term for $2,400!

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

Location location location... and the price was about 100k below the lowest priced homes that are selling in that area.

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

Was under contract. Kept checking on it, finally realtor told me the buyer didn't get there funds approved and let me send them my offer for asking.

How did you finance this deal?

Traditional Bank loan with 5% down.

How did you add value to the deal?

was already remodeled, no work was needed.

What was the outcome?

First made it AirBnB, added some nice furniture in there. The market for short term rentals in the area was pretty saturated, thought I would post it as a long term rental to see what feed back I would get and was able to find a renter for the great price I put it on there for.

Lessons learned? Challenges?

AirBnB by myself was a lot more work than I imagined it to be.

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

Chase Stam and Chris Randle from Realty One

Investment Info:

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

Purchase price: $535,000
Cash invested: $80,000

Bought this duplex for a little more then a wanted, but the location was too good to pass up. one of just a couple multifamily homes on the street. multiple million dollar homes on the same street. This duplex had a great layout and was able to rehab and rent towards a premium price you wouldn't get in most places. Also the possibility of airbnb, just 20 minutes from 3 ski resorts and just 20 min from downtown.

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

MLS, got closing costs covered.

How did you finance this deal?

conventional

How did you add value to the deal?

updated bathroom, opened up wall between kitchen and living room

Lessons learned? Challenges?

Find a good loan officer...

I don't have enough equity to refinance now to pull anything substantial out. 

BP Family! 

I am reaching out to all of you to help me try to solve this cross road I am at. 

I currently own a Fourplex that I had purchased 2 years ago for 450k with an FHA Loan. I do not have a lot of equity in the property, but have updated one of the units. I am currently cash flowing about $1,200 with possibility for more when the other units are updated.

Right now in the Salt Lake City area properties similar to mine have been selling between 650k and 750k most of which do no get the amount of rents I get and our older properties. Side note this all being said, if I got an appraisal it would most likely come in closer to 550k-600k.

I have always wanted to do the BRRRR method to be able to purchase more properties faster.

So my question is this, should I keep the good property I have and just slowly try to purchase properties with money I have saved and private money OR should I sell my place and 1031 exchange into a property I can put 20% down, rehab, refinance and repeat?

Any input would be greatly appreciated!

Investment Info:

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

Purchase price: $450,000

Cash invested: $20,000

Bought this fourplex with an FHA loan working on rehabbing the rest of the property to refinance and purchase another multi family or syndicate a deal.

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

Ready Rich Dad Poor Dad like most on here. Was drawn to the idea of financial freedom, and once I started researching properties and learning more I realized how much I loved doing it.

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

Found on MLS at time was under contract. Saw it had been under contract longer then normal and had my agent reach out to them. Turned out the buyer had backed out and if I put in an offer they wouldn't put it back on the market. Original asking price was 500k but only appraised for 450k. Since I was using and FHA the bank would only let me loan as much as it appraised. Lucky he was doing a 1031 exchange and had to sell very soon. We were able to negotiate the 450 deal and make it happen.

How did you finance this deal?

FHA Loan

How did you add value to the deal?

I was able to close on the property in 7 days

What was the outcome?

raised rents and now get $4,200 a month in rental income. I have a cash flow that pays for where I live now, and a great investment that only keeps going up in value.

Lessons learned? Challenges?

Property managing is more difficult then expected. Rehabbing yourself using only youtube and your dads tools was probably the most challenging thing.

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

I did this deal solo, no mentor, I found the deal not my agent. Just because you are starting out doesn't mean you NEED to have help to do it. You can make it happen yourself with some good ol elbow grease.

Drew Whitehead Did you end up purchasing anything? I am also looking at purchasing a condo in Park City and using airbnb. if you did, I would love to hear about how its been going? 

I don't need 100% cash back just enough for a down payment on a duplex.

What if there are not a lot of comps in the area? That was problem we had with the original appraisal of the property. If I could bump the rents up from 875 each unit to 1200 each unit after they are all remodeled, would that effect the new appraisal? The few comps in the area are a little run down and smaller then my property and on the flip side of that there are other properties that are up to date but have a few more rooms/units.