All Forum Posts by: Zachary Rymarcsuk

@Stephanie P.

Yes, I have experienced a friend renting a room from me...we are sadly no longer friends, largely due to that 1 year of living together.  A separate space seems like it would work out much better...preferably separated horizontally rather than vertically so that we do not have too much of an apartment effect above and below.

I love the idea of getting in touch with the hospital in the area for some research before pulling the trigger, especially to see if they could recommend my property!  Thanks so much!

@Stephanie P.

Thanks!

Certainly open to a house hack.  The ideal situation being there is a separate unit where the tenant, whether long-, mid-, or shot-term, would have 100% their own space, either attached or detached.  Not open to house hacking in the sense of renting out rooms at this point in time.  Why would you sell the primary and not keep it to rent it out as well?

I had run the numbers on furnishing a property to convert from LTR to MTR and I came up with a nearly 33% ROI on that money. It would bring my property from a total ROI of 9% up to 19%, but I am more uncertain about the vacancy to expect there, making me uncertain about the numbers as a whole. Do you have a good way to estimate all expenses and vacancy in MTRs?

@Ion M. Cerga

Great ROI! Nice find and great creative financing!

One question: What is "mailbox money"?  I haven't heard this term before.

Hi all! Thanks in advance for any input! =)

I recently completed a cash out refi to successfully pull all of my funds out of a LTR property for my 2nd completed BRRRR. Now I am contemplating what to do with the funds in this current market. Without going into too much detail, here are the options I have been weighing and I would love to hear what others think:

1) Purchase another LTR property (likely in Fayetteville, NC) requiring some renovations to have instant equity.

2) Furnish a current LTR (near medical complex in Fayetteville) to convert into either a MTR or STR (MTR preferred).

3) Purchase a new primary residence in the Raleigh-Durham, NC area while keeping the current primary (Raleigh-Durham area) as a LTR. Rent on the current primary would likely end up covering ONLY the PITI and I would manage the property myself. In the new primary, I would need a separate unit to house hack in order to keep my mortgage roughly the same as it is now.

4) Sell current primary residence and use both sale and cash out funds to purchase a new primary residence in order to keep PITI roughly the same as it is now. Depending on the price of the new property, this may or may not require a house hack.

5) Open to other good options, but primarily interested in buy and hold opportunities.

Thank you for taking the time to read and, again thank you for any input and/or feedback!

Hi all!  Thanks in advance for any input! =)

I recently completed a cash out refi to successfully pull all of my funds out of a LTR property for my 2nd completed BRRRR. Now I am contemplating what to do with the funds in this current market. Without going into too much detail, here are the options I have been weighing and I would love to hear what others think:

1) Purchase another LTR property (likely in Fayetteville, NC) requiring some renovations to have instant equity.

2) Furnish a current LTR (near medical complex in Fayetteville) to convert into either a MTR or STR (MTR preferred).

3) Purchase a new primary residence in the Raleigh-Durham, NC area while keeping the current primary (Raleigh-Durham area) as a LTR. Rent on the current primary would likely end up covering ONLY the PITI and I would manage the property myself. In the new primary, I would need a separate unit to house hack in order to keep my mortgage roughly the same as it is now.

4) Sell current primary residence and use both sale and cash out funds to purchase a new primary residence in order to keep PITI roughly the same as it is now. Depending on the price of the new property, this may or may not require a house hack.

5) Open to other good options, but primarily interested in buy and hold opportunities.

Thank you for taking the time to read and, again thank you for any input and/or feedback!

@Justin Melendez Love the before and after pictures! Congrats on finding and completing this deal, especially long-distance now! I hear you on the ROI hit. Pretty rough. I experienced a similar scenario with my most recent acquisition, which we purchased in early July and just got rented out.

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $120,000
Cash invested: $40,000

3/1 SFH built in 1962

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

Potential for cash flow on a nearly turnkey property and the ability to bring another investor into the fold to finally get their toes wet with REI!

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

MLS deal. Submitted offer at asking price the day it got listed, due to hot market and value adds which sellers completed prior to listing.

How did you finance this deal?

30-yr fixed rate conventional loan with partner.

How did you add value to the deal?

Had new roof installed and renovated a handful of other smaller items.

What was the outcome?

Took longer than originally planned to get it rented, but able to get it rented above the rate that I ran the numbers at, so it's a win.

Lessons learned? Challenges?

If a property has a room painted a "special" color, don't leave it and wait for the "right" tenant to come along who happens to like it. Just paint it a neutral color before even listing for rent. We went 3 weeks without any applicants, with most who looked at the property citing the yellow kitchen (walls and cabinet doors/drawers) as the reason for not wanting to apply. Within 1 day of repainting the walls white and the cabinet doors/drawers dark gray, we found our tenant. Don't wait.

@Gopichand N. I currently have a PM for my properties, primarily due to my properties being about 1.5hrs from my primary residence.  There are many tasks that I have taken upon myself as I learn more, and it is possible that I could end up managing myself.  However, my intent is to grow to having enough units that it will not be feasible (or make sense in terms of my time spent) to manage all of the properties myself.  That being said, I am trying to learn how to best work with a PM for the long term and more clearly define what I expect from a PM.  I look for both sides to benefit from the relationship.

@Michael A. Glad to help! =)

@Mike Kehoe I like the potential for those markets as well, for potential growth due to proximity of Raleigh-Durham area.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $92,000
Cash invested: $36,000

3/3, built in 1983, in one half of a duplex, just 1 minute from an entrance to Fort Bragg.
Purchased with a partner providing the down payment and myself providing renovation costs and labor, with plans to refinance within 1-2 years of purchase to successfully complete this BRRRR deal.
Roof, fence, and HVAC all less than 5 years old at time of purchase.
Largest renovations included new deck, LVP flooring, granite countertops, and finishing the master closet.

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

Property is a 3/3 where each bedroom has its' own bathroom and it is so close to Fort Bragg that it had great potential to rent by the room for maximized profit.

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

Found property listed on Zillow as FSBO and contacted seller within 1 hour of property going live. I offered the seller the exact asking price, but the seller increased it by $10k due to all of the interest garnered. I reran numbers and, seeing that this still projected to be a good deal, offered the increased asking price, but with the seller paying $3k of closing costs, which was accepted.

How did you finance this deal?

Conventional financing with 20% down.
Partner paid for down payment and closing costs.
I paid for renovations.

How did you add value to the deal?

Biggest items were tearing out deck and installing new one, replacing carpet with LVP, installing granite countertops and new sink/faucet in kitchen, and finishing master closet. Many other smaller items were completed as well, which took much longer than originally anticipated.

What was the outcome?

Property got listed about 1 month behind schedule and we had to drop rent $100/month to garner much interest. Within 1 week of dropping rent, we had a signed lease. The good news is that the final monthly rent amount is actually $150 above what we originally projected it would be.

Lessons learned? Challenges?

Even some small items are quite a bit more time consuming to complete than you'd think, especially when you are training yourself on them as you go.

@Michael A.

I largely agree with the others commenting on this thread thus far.  I personally live in the Raleigh-Durham area of North Carolina and invest in Fayetteville.  I used to live in Winston-Salem and, as such, have searched in the Greensboro/Winston-Salem/High Point market, but tend to find better deals in Fayetteville.  One of the big draws of Fayetteville for me is the high chance that you may end up with a military tenant, so potential issues for landlords, such as COVID causing people to lose jobs, are less likely to affect your rent coming in.

I have purchased 3 properties in Fayetteville since October 2020, all for right around or well under $100k for purchase price plus renovations.  I would say they are all between lower B class and upper C class neighborhoods with a similar range of tenants.

Keep in mind that Fayetteville is far enough from the exploding Raleigh-Durham area that it is not benefiting from the same appreciation, but Sanford may experience more growth in the near future due to it's commutable distance and current industry.

Hope this helps and feel free to reach out if you would like any specific questions answered! =)