All Forum Posts by: Nick Powell

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $123,000
Cash invested: $11,200

This was a house hack that we bought and moved into for 6 months. During that time we would list it on AIRBNB during the weekends while my fiancé and I would be out of town. We ended up bringing in such strong results that we decided to move out and make it a full time short term rental which now is bringing in over $300 of cash flow every month.

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

We found this deal off market and negotiated based on the brokers opinion we received before going into contract.

How did you finance this deal?

We financed this deal on a commercial loan through a portfolio lender which meant a high interest rate. However, we have since refinanced on a 30 year conventional loan with 20% down thanks to some built in equity by buying at a great price.

I am currently in closing with another property and have another property I am trying top obtain.  I feel like I am missing something... Could I just have my business partner obtain the loan to buy the second property? If so what would we need to file to make sure both names would be on title without effecting my other contract that is pending?? Any extra info regarding this will be greatly appreciated.

Thanks!!

Investment Info:

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

Purchase price: $62,050
Cash invested: $500

This property is a duplex with 3 beds and 1 bath on one side and 2 beds 1 bath on the other. The greatest thing about this deal was that I actually made money at closing. I negotiated to wrap the closing costs into the purchase price so my lender was able to add that into the loan amount. On the other side I received the current tenants security deposits and the next months rent which was another wake up call to see just how powerful this business is.

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

I found this deal by stopping at a property which had a for sale by owner sign in the front yard. I ended up meeting the owner and he had multiple properties across town that he was trying to sell. The next day we met back up and visited multiple properties and one of them was this duplex in which I went on to purchase.

How did you finance this deal?

This deal was financed through a private lender.

What was the outcome?

I currently have both sides rented out for a total monthly income of $1025. After the bundle, vacancy, repairs, cap ex, etc. I am cash flowing just over $300 a month.

Thank you to everyone! I am excited and looking forward to sharing my next deal. Hope all is well!

@Carlos Villalobos You are right! That is always a good feeling. To answer your question about approaching the owner. Fortunately, the previous owner was a family member so I already had a great relationship with them.  Also, they had been a landlord for about 20 years so they wanted out of the game so to speak.  Therefore, we came to a deal that was a win-win for both sides. Some key tips I learned and incorporated into the discussion was to be honest about my goals for the property were and to also get a better understanding of the previous owners goals.  That is eventually what led to the win-win situation.

Investment Info:

Single-family residence buy & hold investment in Wichita Falls.

Purchase price: $89,000
Cash invested: $4,492

This is a single family residence that I had previously been renting from the owner. Now, I have purchased this home and am currently house hacking with three other roommates who pay me rent which covers all of my bundle(mortgage, insurance, taxes) and I end up with $150 in cashflow. I was able to purchase through seller financing with zero down and only 4% interest.

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

I was tired of paying rent when I realized I could own the property and actually make money while I lived there.

How did you finance this deal?

Seller Financing - Zero down - 4% interest

How did you add value to the deal?

I gave the exterior a makeover and added a bathroom to the master bedroom.

What was the outcome?

Currently I am cash flowing $150 every month and according to comps in the area the property is worth $110,000.

Hi guys, I am currently an assistant college basketball coach diving into real estate investing. I have been running deals over and over specific to my market. I have currently landed on a great deal. It is a single family property with 2 bedrooms & 1 bath. The seller is asking $32,000 as is and it is for sale by owner. The renovation estimate is $20,000. However, the gold is behind the house. There is another small 1 bedroom 1 bath on the same lot that comes with it. This smaller house has been completely remodeled and has a tenant already living in it for $395/month. I have ran numbers and my lowest ARV I could receive is $50,000. (that is low balling the numbers) Therefore, i would leave 2,000 in the deal. Now, cash flow on this property is beautiful. Rents are at $750 in this neighborhood (directly across from the city high school). So $395 + $750 = $1,145. But if we do it right we will subtract mortgage, tax, insurance, vacacny, and Cap Ex to get a difference of $425 which is $5,100 of annual Cash Flow. After a year i can cash-out-refi and pay of my lenders and the world will be a wonderful place for everyone. Now, the reason for my post is that my lenders fell through. They are scared of the rehab. I am not. Now, i have asked the sellers to owner finance for a year until i can use my cash-out-refi. I will update as soon as they get back to me.

Please let me know if you have any other ideas.

Thanks everyone, I love Bigger Pockets and everyone on here.

Stay safe.