All Forum Posts by: Nick D.

Hey @Eric Lee, I had been working with a realtor to find a good investment property and got very lucky with this one. The owner was older and passed away leaving the home to an out of state daughter. This daughter just happened to reach out to my realtor to begin the selling property. She explained to the seller that they would be best off cleaning up the house some before listing due to its condition or trying to find an investor to buy it as is. And that's where I came in. I did a quick drive by to see the location and exterior and made an offer expecting a full remodel. I also offered to pay all real estate fees to keep it off market and give the seller as much of the proceeds as possible. She accepted a few days later!

Knowing that I probably wont get this lucky again I have begun to drive areas that I like and write down addresses of properties that look distressed. You can then direct mail them or find the owners number to call. I use the county assessors page to find the owner and if they own multiple properties or not. I hope to find distressed properties of out of state owners as I feel those may be the easiest to get an accepted offer from. 

@Andrew Daus I think you have a good plan with the house hack! With my work I have moved across country a couple times now. Each time I was able to pick up an additional roommate allowing me to leave my belongings and have two tenants. My biggest mistake was never signing a lease with them. Luckily I always rented to someone I knew so I never got hurt financially but getting them to move out was always a pain and a number of them left quite the mess for me to deal with. Other then that I highly suggest you house hack for as long as your life style will allow. You should try to focus on finding a small multi family to BRRRR, that will allow you to continue the house hacking model but with a little more personal space.

Hey @Andrew Daus, Great questions! I didn't clarify that too well. I purchased with a conventional and 20% down the 220,000 is my all in after repairs. The ARV on this property is somewhere around 310k-320k. The home was probably considered livable it was mostly cosmetic (hoard). Buying it with 20% down and well below the comps I was able to waive the appraisal.

I am currently on the second "R" and just listed this week at $2,200. I want to get it rented before refi so I can better know my numbers and know how much I can pull out of it and still cash flow. 

No worries on the questions, I am just getting into this myself. I have been "house hacking" without knowing it for the last 7 years. Purchased my primary and have always had a roommate paying my mortgage. After finding BiggerPockets about a year ago i discovered that I was off to a good start without knowing it and I am now actively pursuing the real estate path to financial freedom. 

Investment Info:

Single-family residence buy & hold investment in Gilbert.

Purchase price: $175,000
Cash invested: $220,000

Single Family BRRRR in downtown Gilbert, AZ. Bought off market and did a full remodel. Started with a 3bd/1ba, modified the floor plan to a split master 3bd/2ba, added laundry and relocated kitchen.

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

Location, Size, Condition & Potential

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

Made offer site unseen covering all seller concessions.

How did you finance this deal?

Conventional 20% down

How did you add value to the deal?

Full remodel, built out carport to a master suite w/ new bath giving the home a spit floor plan with large rooms and an additional bath. Added in unit laundry. Removed interior walls opening up the living space and giving a very modern touch.

What was the outcome?

Became a great cash flowing rental

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

Christine Ashley with Kelly Cook real estate group KW.