All Forum Posts by: Nicholas Potocki

@Mark S. 

Thanks! What do you mean by reserves? Monthly cash flow is $1012.

Investment Info:

Single-family residence buy & hold investment in Georgetown.

Purchase price: $173,000
Cash invested: $44,000

3 bed, 2 bath ranch. 1500 sq ft that backs up to woods and green space.

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

My goal was to have purchased two additional properties by the end of 2019, and I needed one more. This house was similar to my other properties and is in a neighborhood that is new and highly valued. Additionally, I learned to add value by charging pet fees and a fee for using the shed. This property has a fenced in backyard which is good for pets and a very nice shed.

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

I was looking for my next deal and I noticed this house had been on the market for about 60 days. In my market, a house like this usually does not last more than a day or two. I contacted the realtor, and she mentioned that this house was under contract but the financing fell through. I believe most people were concerned about this property because of the length of time it was on the market.

How did you finance this deal?

30 yr. fixed with 25% down.

How did you add value to the deal?

Since I didn't have an agent, the selling agent took 2% off the selling agent fee. Purchasing below market value gave me instant equity. Charging a pet fee of $50/month and a shed usage fee of $25/month enhances my cash flow.

What was the outcome?

I have a 2 year lease signed and payment are made automatically to me with Zillow Rental Manager.

Lessons learned? Challenges?

The couple that is renting this house are newlyweds. They moved from Eastern Kentucky, which is an area of high unemployment due to the downfall of the coal industry. The couple had been living with their Aunt and Uncle until they had enough money saved up for a security deposit. They were so excited about the home. I feel like I was able to give this couple a nice home and a foundation for a the future.

Investment Info:

Single-family residence buy & hold investment in Georgetown.

Purchase price: $148,000
Cash invested: $59,000

3 bedroom, 2.5 bath with about 1700 sqft.

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

I own the single family home next door. I wanted to have a Park Place and Boardwalk ;)

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

Since I own the home next to it, I knew the owner of the home. He was no longer living in the house and was coming by once per week to mow. I asked him if he wanted to sell, and we came to an agreement. No realtors used. I wrote my own purchase contract and used my lender to help with the closing.

How did you finance this deal?

30 yr. fixed mortgage with 25% down.

How did you add value to the deal?

The house was in rough shape. The previous owner had buddies living in the house, and it was not well kept. I put about $20,000 into a rehab and a ton of my own effort. Luckily, I purchased the house for $148,000. Current market value is around $185,000.

What was the outcome?

The house is rented. The current tenants raved about the house and asked me if they could buy the house when their lease was up.

Lessons learned? Challenges?

This was my first rehab. Although I hired a general contractor, I ended up doing a ton of work myself for two reasons: First I was trying to save cost, and second, I underestimated how much work needed to be done. I couldn't "see the forest through the trees."

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

I used Gaines' Renovations for the rehab. I highly recommend them, and will use them again.
I use Sun Lending USA for lending on all of my deals. Peter will "make you happy."

Investment Info:

Single-family residence buy & hold investment in Georgetown.

Purchase price: $148,000
Cash invested: $59,000

3 bedroom, 2.5 bath with about 1700 sqft.

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

I own the single family home next door. I wanted to have a Park Place and Boardwalk ;)

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

Since I own the home next to it, I knew the owner of the home. He was no longer living in the house and was coming by once per week to mow. I asked him if he wanted to sell, and we came to an agreement. No realtors used. I wrote my own purchase contract and used my lender to help with the closing.

How did you finance this deal?

30 yr fixed mortgage with 25% down.

How did you add value to the deal?

The house was in rough shape. The previous owner had buddies living in the house, and it was not well kept. I put about $20,000 into a rehab and a ton of my own effort. Luckily, I purchased the house for $148,000. Current market value is around $185,000.

What was the outcome?

The house is rented. The current tenants raved about the house and asked me if they could buy the house when their lease was up.

Lessons learned? Challenges?

This was my first rehab. Although I hired a general contractor, I ended up doing a ton of work myself for two reasons: First I was trying to save cost, and second, I underestimated how much work needed to be done. I couldn't "see the forest through the trees."

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

I used Gaines' Renovations for the rehab. I highly recommend them, and will use them again.
I use Sun Lending USA for lending on all of my deals. Peter will "make you happy."

Investment Info:

Single-family residence buy & hold investment in Georgetown.

Purchase price: $175,900
Cash invested: $44,000

This single family home is a 3 bed, 2.5 bath house with almost 1600 sqft on an unfinished basement.

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

Since I was having success with my first rental property, I decided to do a second. This house is on a full unfinished basement that I knew would be attractive to families who were moving to the area and needed ample storage.

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

This house was listed on the MLS as a FSBO. I used a realtor to negotiate directly with the seller.

How did you finance this deal?

30 year fixed mortgage and 25% down.

How did you add value to the deal?

Since I have lived in the area for years, I know that this section of the neighborhood was built as a step-above the other builder housing tracts in the area. The builder used higher end materials compared to other builders. During the recession the builder sold out to another builder. Now all of the houses in the neighborhood are valued the same, but I know this house is better than the rest.

What was the outcome?

The original tenants are still in the property. No late payments and all is well.

Lessons learned? Challenges?

I replaced the carpet when I purchased the house. The tenants have dogs, and I can see that the carpet will probably need to be replaced when they move out. I would have installed LVP flooring instead of carpet if I was to do it again.

Investment Info:

Single-family residence buy & hold investment in Georgetown.

Purchase price: $142,500
Cash invested: $29,000

It is 3 beds, 2.5 baths with almost 1700 sqft. I would call this house a B to B+ property.

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

When my wife was pregnant with my son, we decided to move to have more space. The local rental market was hot, so I decided to advertise it for rent instead of selling it. This house became the foundation and catalyst for my real estate business.

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

This house was my primary residence (starter home) for seven years.

How did you finance this deal?

I have a 30 year fixed mortgage with 20% down.

How did you add value to the deal?

Since I bought this property in 2008, when I started to rent it in 2015, I already had a decent amount of equity in the deal.

What was the outcome?

I've had three families in the house, each with two year leases. I've not had a late payment or any damages (knock on wood).

I like the advice about starting to network through my local meetups. I will begin doing that starting tomorrow with a meetup in Lexington, KY. 

However, I am interested in a real estate conference as a means to get away to think more deeply about real estate investing. I find that if I can get away for a few days, I have more time to think and focus on long term strategies, and I will the opportunity to network also. While a local meetup is a good idea, and I will begin attending some, I would like to go to at least one conference this year. Unfortunately I can't go to the Best Ever Conference. What others are very good for beginners? I currently have 5 single family home rentals, and would like to grow to about 20 in the next few years. 

It looks like the Best Ever Real Estate Investing Conference will be a good one. Unfortunately, I already have a commitment for that weekend and can't make it.

Will Bigger Pockets be having another conference in 2020?

I am looking to network with landlords that are beginning their real estate business, just like me. 

I have four single family homes, and I would like to grow my business to achieve FIRE.

I am interested in attending at least one real estate conference in 2020. In your opinion, what are the best conferences for investors?