All Forum Posts by: Shane Cleary

@Ebin Collado - we put 10% down sir! Thanks

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $119,000
Cash invested: $22,000

This was myself and my wife's first investment property together. We wanted to purchase a home that was livable but could use some updating. As we loved the area, we wanted to live in the home and fix it up at the same time, and we did!

After purchasing the home for $119,000 (negotiated the sales price down from $130,000, we pushed in about $22,000 cash to update the entire interior and exterior of the home - nothing fancy, but tasteful and simple! We then went on to refinance out at an ARV of $190,000. We used our cash out to purchase our new primary and turned this home into a rental. As it is located 3 blocks from KU Medical Center in Kansas (a multi-billion dollar development) we had a high demand of renters seeking to live in the home and expect solid appreciation over the coming few years. We ended up getting renters in at the start of April 2020 at $1,685.

All in all, an enjoyable and profitable experience - now on to the next one!

How did you finance this deal?

Conventional Financing - 30 year @4.5%

Hi @Bob Romano,

First and foremost, thank you for sharing this situation.  Starting with your most recent update - If it was me, I would cut my losses immediately and seek a new tenant. My family had some serious issues with untrustworthy tenants who pleaded with them that their situation was just unusual, and it would improve.. it never did. Something they thought me was to treat a tenant like a potential employee - the first few interactions are interviews. The first couple of months is the trial period - a great employee is one that is on time to work (pays on time), presents well (keeps the property in order) and is respectful to their colleagues (neighbors & YOU). If you were his employer and just hired him, and he comes in late every day of his first week... warning lights would go off and you would be letting them go..

I wish you only the best, and as @David Avetisyan mentioned - this is an expensive lesson learned but one you can in turn share with others! 

Let us know if you have a refined screening process in place going forward, as I would love to see how that is the implemented!

Best of luck,

Shane

Hi @Account Closed

I wanted to reach out first and foremost check in to see if you have managed to get in contact with any turnkey providers here in KC? I would love to connect regardless and get a handle on how your experience has been to date and what you anticipate your goals are from a real estate perspective for 2019! 

Originally from Ireland myself, I was unsure about turnkey processes until I came here and have loved the idea so much - that I have since started to work for a turnkey company! Anyways, let me know if I can answer any questions about KC as a market place or the turnkey process as a whole.

Looking forward to connecting!

Cheers,

@Jeannie G - unfortunate to hear you had a rough experience here in KC and in particular, with a turnkey provider. The appeal of working with a turnkey provider is that you are afforded a much more hands-off approach (generally), less stress and whether or not it is your first or 100th deal, a fantastic addition to your portfolio. I believe the key move is to do significant 'due diligence' on the company you intend on working with - online reviews, speak with their reps and review the properties they offer. The leg work put in on the front end, benefits massively in the long run!

I wish you the very best on your next endeavor and regardless of anything, you have some great lessons to take forward!

Cheers,