All Forum Posts by: Shari Nott mcKinley

@Brian Grant I am also with Farmers and that’s exactly what they did to bring the cost down, a wrap around policy with FAIR. When the agent explained it to me, it seemed so pieced together but I’m starting to understand how it works. I guess I’m as much concerned with the future resale values at this point. Thank you for your response.

Last month one of my properties in Running Springs came up for insurance renewal. It’s a small 1400 sqft homes in the mountains so considered fire zone. For the past 6 years I’ve been paying about $1600 annually for my policy but the agent called and said it came in at $5000 this year! 

Has anyone else had this issue? Any suggestions? Anyone out there who has mountain property in California know of a good agent who has experience with this?

@Geordy Rostad thank you for taking the time to read and respond. I just purchased the book you recommended and look forward to reading it!

I have no doubt BRRRR works, and I've done all but the refinancing. My biggest concern is losing so much positive cash flow by adding mortgages. But I know on the other hand I'd have the cash to invest. It's definitely something I hadn't considered before so I need to spend some time crunching numbers to see what works for my situation.

Again, thank you! You’ve given me a lot to think (and read) about!

Hello...

I’m very new here and have really enjoyed reading the posts and advice. I’ve been a buy and hold investor for a dozen years and I can’t believe how much I’ve learned from this site in a few short days! 

I currently own 4 rental properties (and 1 flip I’m trying to complete...but that’s for another post). I have accumulated these properties over the past 11 years or so. They all have good positive cash flow. Two properties have doubled in value and two have more than tripled in value. I’ve been able to pay off 2 of the properties and the other 2 have very small balances remaining.

Because of these investments I’ve been setting goals and have had an amazing plan set up to retire early from teaching kindergarten (next year) so I could enjoy traveling and to spend more time with my husband. I also always wanted to start flipping houses after retirement.

THEN suddenly everything in my life changed when my husband died unexpectedly.  So...my financial income has also changed significantly too. I’m still retiring from teaching...that decision I’ve already made.  But now I need to make sure I’m making my investments and money work even harder for me! 

Should I start selling my rental properties soon since I know it will give me a nice guaranteed cushion in the bank now? I’m concerned that if the values fall I will have missed an opportunity to cash in. Or should I sit on them since they’re all giving me income which will probably continue to increase? 

 I bought my first home just out of high school when I was 18.  Sold that one and bought another one when I was 19. You’re never too young to start! Don’t take on debt (credit cards, car loans, etc.) and keep your credit clean!! If you want it...you can do it!

This is a great question!! 

Being a new widow is holding me back...I’m just plain scared to make a major decision again without my husband to consult with about it!!

I’m a full time kindergarten teacher but I’ve been a small part time rental property investor since 2008 and currently own 6 homes here in California.  I did most of the investing on my own: found the properties, did the research, crunched the numbers, got us through the escrow process, cleaned up the properties...all the basics. Then my husband Bill would take over and take care of the rentals and renters.  BUT when Bill died suddenly in Las Vegas while attending a convention, it completely rocked my world and stripped away my confidence in almost all areas of my life including investing!

I have cash, experience, and proud to say a perfect 850 FICO/credit score (which I never thought actually existed until I saw mine in February of this year).  BUT I feel frozen and have completely lost my confidence because I don’t have anything or anyone backing me up now!  Before, I was willing to take a risk with real estate because I knew Bill made enough money to keep us going if I made a bad investment and lost a lot of money (which did in fact happen once).  If I lose money now I’m afraid of not recovering financially from it! I actually have a property now that I was/am flipping (first time flipping for me) but the rehab is barely happening because I haven’t been on top of everything including the contractors. My son who has zero experience with real estate is stepping up to try and help me. I know we’ll get it done eventually but it’s been really slow!

How do I get past this frozen stage so I can go on with my investment plans?

Investment Info:

buy & hold investment.

Purchase price: $72,000
Cash invested: $20,000

Rented out, still own property

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

I saw a financial opportunity. I used to be an escrow officer and know the market well.

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

Online on a homes for sale website. I contacted a real estate agent and put in an offer. It was a short sale where the sales price had already been approved. It was a very long waiting process and took about 3-4 months to close!

How did you finance this deal?

Conventional loan with 20% down.

How did you add value to the deal?

After the purchase I hired painters, flooring, and cleaners and got the mess cleaned up and ready to rent.

What was the outcome?

The home has been rented out to the same renter for the past 11 years. I don’t increase the rent so I don’t have to deal with the cost of flipping renters! It is now completely paid off so it makes a nice profit each month. ALL profits go in the bank toward my next purchase. It’s invested and never spent!

Lessons learned? Challenges?

Take advantage of a down market when you can! And repeat if possible! I’m just a kindergarten teacher doing this on the side. I found something small I could afford and continued to grow from there!

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

Not at this time