What was your first real estate deal?

Question

Hi All!

Curious to know how you got into real estate investing? What was your first deal and how did you continue to come up with money to finance your second, third, etc. deal?

Currently own two short term rentals in New Hampshire. Purchased both in 2021 when rates were super low. Now unsure how to keep the ball rolling and go for investment number 3 (not looking to do another str).

Thanks!

Terry Ouimet · Answer

bought a pre forclosure house for $490K, put $63K in to fix it up, it would sell today for $1.3 -$1.5M. Interestingly, I was going to sell it after the fixup but my kids loved it, so I house hack the huge basement as an STR airbnb and have a mother in law apartment next door with a LTR. I have another LTR across town fully paid off as well, and am currently shopping in FL for a second STR, my third property....I would suggest keeping your W2 as a way to fund your purhchases, otherwise you have to get really good at building equity and then refinancing to pull cash out, or find private money lenders to keep the ball rolling. Best of Luck to you

Jason Muth · Answer

Hi Bianca - we also have 2 (soon to be 3) STRs in New Hampshire and also live in the Boston area. We're about a half hour south of Lake Winnipesaukee.

How have your rentals been going since you purchased them? Would love to compare notes!

Chris Winslow · Answer

@Bianca Rodrigues

After a lot of researching and saving up, I got into real estate with a low down payment house hack that needed very little work. With the combination of getting a higher paying job and eliminating my rent payment I saved up a bit quicker and was definitely ready to get the second house hack and even support some rehab when it came along.

I'm planning to continue this cycle in addition to saying up in the background until I can support full down payments

Nathan Gesner · Answer

I only had a little saved up. Told everyone I was looking for a cheap fixer-upper. Several months later someone told me about a family of hoarders that wanted to sell their little house. Bought it for the price of the land, spent six months cleaning and renovating it, have had the same renter for six years. Cost me $70,000 including renovations, now worth $250,000.

Eliott Elias · Answer

A BRRRR property in Killeen Texas. Was able to use the money from the refi to keep snowballing into new properties. I realized my money is more valuable when its not all held in one property so now I am implementing hard money

Bianca Rodrigues · Answer

Thanks for the response Brett! Two questions for you! One, how do you come across deals that involve death, divorce, illness, etc. Two, which state are your deals in? I currently reside in MA, homes prices here are insane and a reason why my two properties are located out of state in NH!

Brett Miller · Answer

I started investing around 22. My dad started buying property and everyone thought he was crazy at the time! (This was around 2012-2016) The first property I ever bought was a 3 bed 1 bathroom house in a great area for…$32,000. The kids were trying to sell their mothers house because she was going to a senior home. It needed primarily cosmetic fixes and was an absolute steel! I found that property on Facebook out of all places. Somehow my gf seen it and told me about it and I had a PA signed with them within a hour. The best deals I have ever had all dealt with the same issues Death, disease, Divorce. I bought a 4 unit from an old man well into his 80s who was terminally I’ll and wanted to sell the building I bought it for  $85,000 and it has increased dramatically over the years.I’m in the same boat as you! I want to buy so many more properties after taking too long of a break without any deals! The market up until recently was exhausting looking for anything of value in my area. Anything that had even a smudge of equity left in it was ate up by 10 offers all well over asking. I’m finally seeing houses stick around the market now and even dropping in price. I think this slow down will be a good time to start buying up some more deals!