All Forum Posts by: Wendy Carbone

 It was a conventional bank loan.

Quote from @Wendy Carbone:

Quote from @Jaycee Greene:

Quote from @Wendy Carbone:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,000
Cash invested: $100,000

Single family residential home in A Class neighborhood. Estimated current value $325k-$350k

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

I specialize in single family rental properties in the Huntsville area and this area has a proven track record of increasing home values.

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

The property was listed in the MLS by a local agent who was also the owner. I contacted him within a few hours of the listing going live and negotiated the deal by phone. After a quick drive by of the property and some online research, I submitted my offer and it was executed by lunchtime.

How did you finance this deal?

I did a 1031 exchange for two C class townhomes I sold to one of my investor clients from the West coast.

How did you add value to the deal?

After closing, I painted the whole interior of the house, made some small maintenance repairs, added new LVP and updated light fixtures.

What was the outcome?

I still own this property and in only 4 years the value increased about $100k with cashflow of $1000/mo

Lessons learned? Challenges?

This was a total win for me! This house is in a great area that is growing and has experienced solid appreciation. Current tenants are coming up 3 years in the house with no plans to move. Since the house was fairly new, there were no major expenses other than the cosmetic things we did.

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

Since I am a Realtor, I represented myself in this transaction.

 Hi @Wendy Carbone! Did you borrow money from a local bank/credit union for the remainder of the purchase price or did the funds from your 1031 cover all of it?

 I did use the funds for the remainder of the purchase price :)

 I hit send too fast.  I used 1031 funds and took out a loan for the rest.

Quote from @Jaycee Greene:

Quote from @Wendy Carbone:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,000
Cash invested: $100,000

Single family residential home in A Class neighborhood. Estimated current value $325k-$350k

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

I specialize in single family rental properties in the Huntsville area and this area has a proven track record of increasing home values.

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

The property was listed in the MLS by a local agent who was also the owner. I contacted him within a few hours of the listing going live and negotiated the deal by phone. After a quick drive by of the property and some online research, I submitted my offer and it was executed by lunchtime.

How did you finance this deal?

I did a 1031 exchange for two C class townhomes I sold to one of my investor clients from the West coast.

How did you add value to the deal?

After closing, I painted the whole interior of the house, made some small maintenance repairs, added new LVP and updated light fixtures.

What was the outcome?

I still own this property and in only 4 years the value increased about $100k with cashflow of $1000/mo

Lessons learned? Challenges?

This was a total win for me! This house is in a great area that is growing and has experienced solid appreciation. Current tenants are coming up 3 years in the house with no plans to move. Since the house was fairly new, there were no major expenses other than the cosmetic things we did.

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

Since I am a Realtor, I represented myself in this transaction.

 Hi @Wendy Carbone! Did you borrow money from a local bank/credit union for the remainder of the purchase price or did the funds from your 1031 cover all of it?

 I did use the funds for the remainder of the purchase price :)

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,000
Cash invested: $100,000

Single family residential home in A Class neighborhood. Estimated current value $325k-$350k

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

I specialize in single family rental properties in the Huntsville area and this area has a proven track record of increasing home values.

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

The property was listed in the MLS by a local agent who was also the owner. I contacted him within a few hours of the listing going live and negotiated the deal by phone. After a quick drive by of the property and some online research, I submitted my offer and it was executed by lunchtime.

How did you finance this deal?

I did a 1031 exchange for two C class townhomes I sold to one of my investor clients from the West coast.

How did you add value to the deal?

After closing, I painted the whole interior of the house, made some small maintenance repairs, added new LVP and updated light fixtures.

What was the outcome?

I still own this property and in only 4 years the value increased about $100k with cashflow of $1000/mo

Lessons learned? Challenges?

This was a total win for me! This house is in a great area that is growing and has experienced solid appreciation. Current tenants are coming up 3 years in the house with no plans to move. Since the house was fairly new, there were no major expenses other than the cosmetic things we did.

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

Since I am a Realtor, I represented myself in this transaction.

Hi Anthony,

I am currently working with many OOS investors who are choosing the market here in Huntsville Alabama. Our city is growing fast, taxes are low, rental rates have risen steadily (6% this year). I would caution you about relying on zillow or some of these other sites for rental CMA's. Your best bet is to talk to a property manager in the area you are wanting to invest in and get the FACTS about the comps for the property you are considering before you make the offer to purchase. I am a property manager and licensed Realtor here so please let me know if I can help you!

What @Dave DeMarinis said is spot on!  When he said:

"3. The variation above makes it very easy to buy thinking you are getting one thing when you might be getting another because there can be 1 mile difference and 10X average home price"

I could not agree more. I am surprised at how many OOS investors are trying to purchase and then rent properties based on bad information. Do your due diligence with regard to researching the schools and crime info for the house you are interested in . If your intent is to rent the property out, contact a local property manager who can run a rental CMA BEFORE you buy! (The majority of Realtors around here who sell real estate do not deal with property management) Just my 2 cents ;)

Thank you!

Thank you @Jaysen Medhurst.  I was thinking the same.  I want to stay consistent with our policy of all occupants over 18 having to apply as well as our minimum 650 score.  I think I was just trying to figure out how to tell the one person who would have been more than qualified on his own,  "no" based on not all 3 meeting the criteria.  He asked why the lease couldn't just be in his name but again that is not our policy.

PS I'm from CT originally......This is my favorite time of year up there!   

One property, 3 applicants.

Would you accept an application where one tenant meets your credit minimums, but 2 additional applicants do not.  Our application states we require a minimum of 650 and we do require everyone over the age of 18 who intends to occupy the property to apply separately. What if one person had a 800 and the other 2 had 500?   Is it enough to just reject them based on "not meeting the credit criteria" or do they need something more specific?

My first move would be to talk to my accountant.  You should really understand what the tax repercussions will be before making this decision.  I know it is tempting to want to just pay off your house, but with a 3.7% interest rate and rates climbing above that, I am inclined to think that would not be the wisest move.  Also if you cash out on your properties, you will be handing a nice chunk over to uncle Sam.  Get some professional advice so you don't have regrets later.  Just my 2 cents.