Investor · Jacksonville, NC · Member since 2018 · 38 posts · 12 votes
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $175,000
My current home that I plan to rent out for $1,200-$1,500 when I move at the end of the year
What made you interested in investing in this type of deal?
At first I was just tired of renting and seeing my money go nowhere, but then I realized the huge potential that this property has as a rental when I move.
How did you finance this deal?
I used my military VA entitlement because I had no money to put down at the time.
How did you add value to the deal?
Hurricane Florence caused slight damage to my property and decimated the supply of homes in the area. I repaired the damage to the house myself to save money and the demand for houses has caused the value of the house to climb.
What was the outcome?
My eyes were opened to the potentials of Real Estate Investment.
Lessons learned? Challenges?
Supply and Demand plays a huge factor in Real Estate Value.
Rental Property Investor · San Diego, CA · Member since 2019 · 12 posts · 1 vote
7y
VA loan for my first home as well. Orders after I purchased this home made me have to rent it. Rental rate for the area is $1500 currently getting $1800.
I was not looking to get cash flow as I just wanted to keep my beautiful home. 2.5 years later I have the same tenants in place. These were medium to high risk tenants that my property management company advised me against.
I went with them though (still do your due diligence). There payments towards the principal balance and appreciation has given me some nice equity.
Go for it. Learn then BRRR. Connect with me and let's network
Rental Property Investor · San Diego, CA · Member since 2019 · 12 posts · 1 vote
7y
VA loan for my first home as well. Orders after I purchased this home made me have to rent it. Rental rate for the area is $1500 currently getting $1800.
I was not looking to get cash flow as I just wanted to keep my beautiful home. 2.5 years later I have the same tenants in place. These were medium to high risk tenants that my property management company advised me against.
I went with them though (still do your due diligence). There payments towards the principal balance and appreciation has given me some nice equity.
Go for it. Learn then BRRR. Connect with me and let's network
Investor · Jacksonville, NC · Member since 2018 · 38 posts · 12 votes
7y
@David Pere my mortgage is $1,067/mo and i pay $1200/mo to get ahead on principle, the house will easily rent out for $1,200-$1,500 when i leave due to being right next to a military base, add 10% to mortgage for a rental company to handle it and I still cone out ahead.
Investor · Jacksonville, NC · Member since 2018 · 38 posts · 12 votes
7y
@Darious Byrd I've done some research on BRRRR and was pleasantly surprised at how similar it was to my original plan when i got interested in real estate.
Take a look at my other thread please and see what you think:
Rental Property Investor · Springfield, MO · Member since 2016 · 1k+ posts · 890 votes
7y
Tyler, have you factored in maintenance, capital expenditures, vacancy, etc? How new is the property. Last thing you want is to omit those items from your budget and discover that you're actually paying out of pocket every month to own the property. Better safe than sorry!