All Forum Posts by: Walter Key

Nice one Alan! 

Are you familiar with our Monthly Bigger Pockets Gainesville Meetup? 

Looking forward to it!! 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $410,000
Cash invested: $1,000

Purchased this on a Sub-to deal with $1,000 out of pocket! Silent partner fronted the acquisition cost and cost to furnish into an AirBnB. In addition to being a perfect lakefront AirBnB, this property also has an awesome detached oversized garage that we're going to convert into a photography studio for my wife's photography business to generate additional income.

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

We live literally 5 minutes up the road on another lakefront property so it was a no-brainer for the ease of managing the AirBnB and the location of the photography studio. The cashflow analysis for the AirBnB is great.

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

Found it on my local MLS, scrubbed the tax record to see it was recently purchased with very little equity built up, then I called the listing agent and had a conversation about his seller, their needs, and how we could put a great win/win scenario together for them.

How did you finance this deal?

Purchased the home Subject To the current mortgage and borrowed the acquisition costs from a silent partner at a great rate.

Mortgage is at 3.14% for the next 28 years! :)

How did you add value to the deal?

The home is completely remodeled and turn-key but we still need to do some nice landscaping, furnish out the property for AirBnB, and finish the detached garage into a photography studio.

What was the outcome?

I got a great deal and a seller avoids foreclosure! A win/win for everyone involved!

Lessons learned? Challenges?

Deals are everywhere...just look for them.
If you find the deal, the money will find you.
Choose your partners wisely (5.5% annual interest with interest only payments...that's hard to find!)

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

I represented my LLC as the buyer's agent and the seller's agent was great but he's not in this former.

Not sure why this posted twice. My apologies.

 Hey Sophia! Let's connect. I'm an active investor and an agent who works with investors. Would love to get you connected to our Gainesville investor family! 

If I wasn't a little older now with a wife, 3 kids, and 6 dogs...I would absolutely house hack.

I'm a Northeast Florida guy myself and there are definitely some house-hack investment options in the Gainesville market. 

Investment Info:

Single-family residence buy & hold investment in Keystone Heights.

Purchase price: $260,000
Cash invested: $215,000

This is our new primary residence. Built in 1960, updated in 1960! UGLY. We did a full, top to bottom remodel. All new everything. Took out some walls, closed off some walls, you name it. It's now easily a $500K lakefront home with a mortgage in the low $200's. HELOC for investment opportunities coming soon while we enjoy our new Northeast FL lake life. :D

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

We were moving to Florida anyway and this is the 14th home that we purchased in the last 20 years after moving quite frequently with a 21 year Navy career. We've built the habit of always buying "an investment", even if we're going to live in it for a while.

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

MLS. It was old, ugly,an estate sale, and had been sitting on the market for a little while. They had already lowered the price enough to make it worth buying.

How did you finance this deal?

Conventional financing with 10% down. 30-YR fixed. While I stated that the cash invested was $215K, that's not entirely accurate since the majority of the remodel cost was actually funded by the HELOC on our previous primary residence because we had bought it years earlier and also conducted a remodel and basement addition which forced tons of equity into the property. Once we sold that property, we simply paid off the HELOC and pocketed the rest of the cash. Our actual cash outlay was barely over six figures but the total cost of the project remodel was $215K.

How did you add value to the deal?

Full top to bottom remodel on the entire home, including moving/removing walls to open up key spaces, and added an additional 233SQFT finished office/4th bedroom.

What was the outcome?

We now have an amazing lake home to enjoy exactly as we wanted and we can tap some of the equity to fund additional STR purchases on the market.

Lessons learned? Challenges?

Not new lessons but certainly worth repeating for the newer investors; it'll take longer and cost more than you expect...plan accordingly! LOL

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

My sister is a local Realtor of over a decade in the Northeast Florida market so that certainly made life easier. I'm now licensed in FL (we moved up from VA) so future investment acquisitions will be easy.

 Jenn is awesome! Your daughter will be in great hands renting from her. :)

Right on. I'm actually relocating my family from Virginia to Keystone Heights myself. We close on a lakefront property on one of the larger Lakes at the end of this month. Doing a full remodel and then we're moving into it by the end of the year. I've heard about the water issues too as my aunt and uncle, grandma, and Mom and Dad all live about 8 minutes up the road from where I'm buying my house so they are intimately familiar with the issues and the potential solution coming. I say "potential" solution because nothing seems to be said in stone as you've probably already found.