New to Bigger Pockets and wanted to share my limited experience

[Seth Gurrola]

Investment Info:

Single-family residence buy & hold investment in Fallbrook.

Purchase price: $176,000
Cash invested: $20,000

Bought home during late stages of the crash. Used as primary residence for two years before renting the property for a $300 cash flow for just over five years while living in the Panhandle of Florida. Now living back in the property with significant equity.

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

I was searching for a home and knew it was a buyers market. At the time I was a single E-5 in the military and came across the deal by chance.

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

I actually turned down the developer not once but twice. I was attempting to purchase another home and this was the developers final home in a subdivision. They reached out to me twice with a lowered price until I couldn't' say no any longer.

How did you finance this deal?

I used a 30 year fixed VA loan

How did you add value to the deal?

I have upgraded the home with new flooring throughout, installed a new A/C unit with new counter tops coming in the near future.

What was the outcome?

I have moved back to the area and into the home. Very fortunate to move back into a house that, if buying new in todays market, would cost more than double what I paid for it. Overall outcome is a very affordable mortgage with significant equity that could be used for the BRRR method.

Lessons learned? Challenges?

Vetting tenants is always a challenge. I find renting to other military members through AHRA works well. If they trash the rental or stop paying rent it is easy to locate their command and find a resolution that works for everyone.