All Forum Posts by: Qui Chau

Lol, I'm not trying to sell anything here. I've taken my time to answer the questions posted here, although it might not be everything you wanted. Certainly not going to give everything away I've learned over 2 decades of investing. Do you think the business coaches out there do that? Come on!

Before you chastise someone, you may be wise to think before you speak. Good luck to your sir.

Investment Info:

Townhouse buy & hold investment.

Purchase price: $73,400
Cash invested: $3,800

In a great location within a NE city we invest in. Everything is walkable from the property. Started out as our first home which we kept as a LT rental. Now FT STR. Drawing above $200/night. Fully paid off and a cash cow as well. Updated home throughout the years and entering it's 8th year as STR.

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

We buy our primary homes with the strategy of it being a future LT hold and its rentability.

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

Found home through our RE agent and she helped us negotiate a great deal. It was a 2nd home for the sellers and we actually had bought it below the value of it being built new at that time.

How did you finance this deal?

FHA with minimal downpayment.

How did you add value to the deal?

Updated the properties throughout the years. It is now "bullet proof" for renting!

What was the outcome?

Great asset as long term hold.

Lessons learned? Challenges?

First property we had bought in HOA. Found out much later that the HOA doesn't have power over what we do with our owner units, only the common area management. That cost us 1 season of STR when they threatened us. Always do your due diligence on the HOA bylaws AND how it was filed in the county court!

Now that it's paid off, we opened a HELOC to leverage that equity for other deals. Money is no good sitting idle!

@Leo R. It's not in the Austin, TX market. Grade of property prior to reno was decent (approx C+/B-). Currently at B grade or so. Neighborhood is B-.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $192,000
Cash invested: $50,000

THEEE cash cow of my portfolio. MTR. Fully renovated and more to come. Looking to build 3rd full bath and adding egress window to classify property as 4/3. This equates to a $50k increase in value in this specific neighborhood. Highly desirable neighborhood due to school district and location. Quick access to highways and high walkability score. Large lot and very unique home in Camp Hill.

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

Best school district. Amazing location. Easy access to all amenities and conveniences. Large lot and unique property.

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

Found through drive by in targeted neighborhood. Negotiated with investor friendly Realtor.

How did you finance this deal?

FHA

How did you add value to the deal?

House needed complete renovations. Added value was the great room that was already there. House was renovated true to the Cape Cod style. All real hardwood 2 1/4 planks throughout. All new mechanicals. Large deck and very large enclosed fenced in yard. Very tall pine trees surrounding the property creating a very private feel yet in the heart of everything. Sits on highest lot so no one can see inside the house. Highest rated school district.

What was the outcome?

Driving market rent by 300%. Cash cow with ZERO vacancies through our marketing strategies.

Lessons learned? Challenges?

Started out as a LT rental. Learned to not trust tenants no matter their income class. This home was rented to executiv income requirement well above 6 figures. One of our high end tenants decided to leave early and turned down the thermostat where it froze the pipes and totally destroyed the property. House sat vacant for 2 year. 20/20 hindsight, I would have taken a loan out to renovate the property ASAP. Now a highly desirable home with daily offers to buy.

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

Worked with RE agent that was well versed in the neighborhood. Best investment ever.

Investment Info:

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

Purchase price: $84,500
Cash invested: $3,200

Duplex, 1/1 and 2/1. First MF investment property. Started with Section 8 tenants in both units. Learned it was not a good fit for me due to delinquencies and lack of care and pride of renting. Cleared them out and renovated property to "bullet proof" condition. Long term rental on 1/1 and STR on 2/1. ZERO vacancies. Net cash flow of $1,800/mth. Paid off in 15 years. Will 1031 once appreciation schedule is exhausted.

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

Interested in cash floowing property located in a great neighborhood and close to amenities and conveniences.

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

Found this through one of my web clients who was a funeral home owner. These are great leads BTW to find great estate deals.

How did you finance this deal?

15 yr mortgage

How did you add value to the deal?

Renovations and bullet proofing it. Zero vacancies.

What was the outcome?

One of my cash cows in my portfolio. Paid off in 15 years with minimal down payment for this deal. "Mailbox money"!!!

Lessons learned? Challenges?

Was originally sold on Section 8 tenants as "guaranteed income". Yes on the guaranteed income but pride of rentership was not there. Tenants trashed the property. Kicked them out, renovated and updated property and greatly improved my tenant screening process. This lead to 300% return with minimal headaches. Still driving market rent in my market for this property ;-)

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

I bought this property on my own. Learned a lot. Always rely on the local real estate market Realtor who is also an investor for your investments!

Yes, I have STRs in Austin. Are you doing STRs as well?

Hi. I'm looking to expand on my rental portfolio. Looking for insights into the Oklahoma markets and what has been successful for you? I'm also interested in STR's. Does OC allow them? Thanks y'all!

Looking at FL market and Destin looks absolutely beautiful. Investor minded agents, please DM me your info. We plan to take a trip there in early August to check things out for our next STR project. Thanks!