All Forum Posts by: Matt Dunlap

Investment Info:

Single-family residence buy & hold investment in Incline Village.

Purchase price: $260,000
Cash invested: $285,000

Short term vacation rental near Lake Tahoe. 3 bed/2 bath condo near the lake and diamond peak ski resort. Spent about $25,000 to remodel. Listed on Airbnb and Homeaway. Our goal when buying it was to rent it for 100 days a year at $200/night. We are currently doing about 200 days/year at around $200/night. gross rental income around $48,000/year netting around $23,000/year.

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

Our family loves Tahoe. We thought we would buy a condo and "Vacation for free", but it turned out to be very profitable. I have to save our time there because it books really fast before winter and summer.

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

We looked for about a year all over Tahoe. We started in South Lake Tahoe. We fell in love with Incline Village on the north shore. We also looked at large homes and major fixers. Since we had no experience with STR we decided to start small and get the cheapest condo on the market. We bought the condo off the MLS

How did you finance this deal?

Cash

How did you add value to the deal?

We remodeled it and furnished it. We wanted to make it feel like a warm, comfy cabin.

What was the outcome?

It has exceeded our expectations, I think due to the healthy economy, Tahoe is booming for vacationers, and the city of Incline village is added more activities during the off seasons which will help increase the nightly stays

Lessons learned? Challenges?

Get a reliable cleaner and make contacts with handymen. We do not have a manager for this property. Our cleaner is very important to us. There are a lot more Airbnb's on the market now in our complex. Some of them have lowered there prices considerably which I think brings in guests that party. We keep our prices on the higher end and target families that would need to get 2 rooms at the Hyatt. They save a lot by staying at our place, and they are not going to party.

Investment Info:

Single-family residence fix & flip investment in San Francisco.

Purchase price: $2,100,000
Cash invested: $2,600,000
Sale price: $2,800,000

Our largest flip. Held for over a year. San Francisco is about an hour from us, not including traffic, so it was hard to be on site a lot.

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

My wife is an agent. She showed the property to a client from Singapore and made a plan to renovate after her client bought it, but the client decided not to move forward. Since, my wife already had a plan to renovate, we decided to buy it and remodel it.

How did you finance this deal?

We took out a mortgage on the property

How did you add value to the deal?

This was a full renovation. We removed some walls in the living room to open it up. It was really small before the walls were removed. We also added large sliding doors to showcase the amazing views.

What was the outcome?

The outcome was good, we hit out estimated selling price when we started the project. Although the project did take a very long time.

Lessons learned? Challenges?

Manage the deliveries better! We had a full Viking Appliance package delivered and left in the boxes in the living room for about a month. The range, microwave, and dishwasher were stolen. The fridge was too large for them to get out.

The house was also too far away and hard for us to be on site.

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

My wife was the Realtor, Trang Dunlap

Investment Info:

Large multi-family (5+ units) buy & hold investment in Oakland.

Purchase price: $640,000
Cash invested: $640,000

5 Unit Apartment in Oakland California. Purchased at a sheriffs auction for $640,000. Oakland has very strict rent control and tenant rights laws, with more proposals introduced all the time. We are just about to start a major renovation on the building.

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

If a good deal comes a long, you have to jump on it. Although the city of Oakland is making it very hard on landlords to do business in the city. If another apartment deal came along, I would have to be incredible for us to buy it.

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

We had a friend that told us their apartment was going to go up for auction due to family issues. Sheriffs auctions are not publicized like foreclosure auctions, so there was only 2 other bidders.

How did you finance this deal?

Cash

How did you add value to the deal?

There is one vacant studio on the bottom floor. The previous owner added 2 additional un-permitted units in the basement making a total of seven units. The additional units were ripped out which caused a lot of issues, but it showed that we could put rooms down there, so we are converting the studio into a 2-3 bedroom apartment. We have to move fast on the vacant studio because Oakland has a vacancy tax of about $5,000 per vacant unit coming soon. We are also looking into sub-metering the water

Lessons learned? Challenges?

Working with tenants will be a challenge. We have to pay them to relocate and then when the renovation is complete they get 1st right to rent their previous units, for the same rent.

Investment Info:

Single-family residence fix & flip investment in Lafayette.

Purchase price: $818,000
Cash invested: $818,000

Purchased off the MLS. Full renovation down to studs. Reconfigure 2 non-permitted rooms into a large master bedroom. Roof needs to be replaced so we will raise about a foot to increase ceiling height. We are going to install more windows and replace all existing windows. Estimated project expense $200K. Projected sale price ~ $1.2M.

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

We just sold our most recent Flip in San Francisco. We are currently doing 1 flip at a time, but ready to step it up and do more concurrently.

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

I have access to RETS(MLS) because my wife is a real estate agent. I wrote a script that finds below market homes. My wife said she was going to Lafayette to meet a client, so I said you should stop by this property that popped up on my script. She saw it, called the listing agent. The listing offers were due in about 2 hours, so we quickly put an offer together and submitted. There were about 8 other offers.

How did you finance this deal?

Cash

How did you add value to the deal?

This will be a full renovation, everything will be touched including new roof.

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

Real estate agent is Trang Dunlap, Intero Real Estate