All Forum Posts by: Ryan Hoover

@Jonathan Yeh

I was just thinking of this last night. I can only answer from my own personal experience. Depending on the size of the lump sum. I would pay off a few of my currently held rentals to get to the point of bringing in monthly cash flow that covers my current income.

After finally becoming financially free, or at least have more options, I would continue to work and put down 30% on an apartment complex. That would pay much more than the mortgage savings.

I have been working as a residential agent for 6 years now.  I primarily got into that space, because I was passionate about single-family investing.  If you are early in your career, you have the luxury to decide where your passion pulls you towards.  I would just trust your gut.

For me, I think less is more with decorations.  Enough to feel homie, but not cramped.  At the same time it shouldn't look like a half done staging either.

In my market there are a lot of retirees, so cable and Netflix are a must.  But it does become a headache at times with passwords and technical issues.

Investment Info:

Single-family residence buy & hold investment in Anthem.

Purchase price: $210,000
Cash invested: $60,000

Value add investment property. Completely remodeled the interior for about $17k and was able to increase rents by over $300 per month. This area went crazy since my purchase! This property now has an estimated value of $260k.

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

I am a big fan of this neighborhood and have always wanted to own a long term rental in the area.

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

This deal was in the MLS and had a tenant in place, which helped me get the home for under market value.

How did you finance this deal?

30 year conventional mortgage with 20% down.

How did you add value to the deal?

Complete interior remodel in a great area helped to boost rents by $300 per month.

Investment Info:

Single-family residence buy & hold investment in Cave Creek.

Purchase price: $280,000
Cash invested: $70,000

Under-priced home in a great, high appreciation area, with a tenant in place and positive cash flow out the gate. This has become my favorite strategy for identifying investment properties. These homes typically sit on the market longer and the current owner is tired of being a landlord. If it's a good tenant, keep them in place or have room to add value in the future and boost rents significantly.

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

Tenant in place with positive cash flow in a great neighborhood.

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

This was a MLS deal that had been on the market for 3x as long as homes in the area.

How did you finance this deal?

30 year conventional mortgage with 20% down

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

Zach at www.waincapital.com is a mortgage Jedi! If he can't get the deal done, it's not happening with traditional financing.

Investment Info:

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

Purchase price: $430,000
Cash invested: $110,000

Duplex purchased with renters already in placed. Renegotiated rents and extended leases without having to renovate property. There is a lot of potential to increase rents with upgrades in the future.

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

Great rents in a very desirable area of Phoenix

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

I found this deal on MLS originally listed for $460k. The market was very competitive at the time, but not so much in this specific area. I was able to get the price down by $30k and the property would still cash flow about $500 monthly without investing any money into the property.

How did you finance this deal?

Conventional 30 year mortgage.

How did you add value to the deal?

Finding a great property, in an area that was a well kept secret for small multi-family.

What was the outcome?

I plan on holding on to this one for a long time and completely renovating when the current tenants leave.

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

My good friend Zach at www.WainCapital.com is the best mortgage broker in Arizona.

Investment Info:

Single-family residence buy & hold investment in Phoenix.

Purchase price: $108,000
Cash invested: $28,142

Purchased the condo for $108k at 25% down conventional, fully remodeled and furnished using a HELOC from my primary residence and a 401k loan. Property now generates positive cash flow as a vacation rental. Recently did a cash out refinance and the condo appraised for $191k!

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

I purchased another identical unit in this complex 6 months prior for $18k higher, so I new it was a great deal.

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

MLS listing that had been on market for over 90 days. The owner had passed away and the kids just wanted to get rid of the property, so I put a low offer out there and it got accepted.

How did you finance this deal?

Conventional financing with 25% down. Used a combo of a HELOC and a 401k loan to fund the down payment, renovation, and furniture.

How did you add value to the deal?

Renovation and furniture

What was the outcome?

Cash flowing vacation rental.

Investment Info:

Single-family residence other investment in Phoenix.

Purchase price: $125,000
Cash invested: $28,000

Purchased the condo for $125k at 20% down conventional, fully remodeled and furnished using a HELOC from my primary residence and a 401k loan. Property now generates positive cash flow as a vacation rental. Recently did a cash out refinance and the condo appraised for $190k!

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

I original bought as a flip, but the numbers didn't make sense after the renovation went over budget. I found out through the area expert agent, that there was a huge demand for vacation rentals in the complex.

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

MLS listing that had been on market for over 60 days

How did you finance this deal?

Conventional financing with 20% down. I used a combination of a HELOC and 401k loan to raise the money for down payment and renovation.

How did you add value to the deal?

Renovation and furniture