All Forum Posts by: Andrew Jech

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $195,000
Cash invested: $45,000
Sale price: $307,500

2600 sqft. rehab.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000
Cash invested: $34,000

Single Family rental in Edmond, OK renting at $1.07/ft.

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

Wealth-building and passive income.

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

MLS, as an owner agent.

How did you finance this deal?

Conventional financing.

Thanks everyone for the great advice and different perspectives!

Mindy - we have considered the house-hacking idea as an option. Currently, I work as an enterprise account manager in the IT industry and my wife is a realtor. We have utilized the box retailers store credit cards, but have paid them off after each project we've completed, so we don't owe anything on them currently. We have been in the house 2 years and our remodel is approximately 85% complete. We have considered renting our single family, but there are some reasons that we are unsure. For one, it is on an acre with 3/4 wooded. This makes for significant lawn work that renters won't likely keep up with, though I have considered paying for it to be done should we move out. Our ideal rental would be on a much smaller lot so that maintenance is primarily in the structure and not the lot. Also, we are hesitant to have renters in-and-out wearing out the property, as we had purchased it with the intention to live there, and finished it out as such. I would have likely chosen more "renter-friendly" finishes had I thought I was going to rent it from the start. This is still something we are considering however!

Hello BP community. I am 28 years old and currently putting together my business-plan and strategy for building my investment portfolio. My goal is to acquire my first rental property in the next 6 months, and I'm hoping for a duplex with a gross rental income that will cover the monthly payment on a 15 year mortgage and potentially provide a small upside of positive cash flow I can set aside for maintenance over time. My question is around financing, specifically the down payment on the loan. I have all the basics covered; my wife and I have excellent credit, we make a modest but decent income, and have no debt beyond our mortgage on our own home. 

First, a little background on our situation. Our current home was an investment in itself, though one that we intend to stay living in. We bought the property for $72/ft. in a neighborhood with several recent comps going for 115-122/ft. It is a 2600 sqft. home. The home needed extensive remodeling to bring it up to its perceived ARV of conservatively 110/ft. (probably more). I am about 85% done with the remodel and have saved a lot by doing all of the work myself. Everything that has been completed is fully paid for (again, no debt beyond the mortgage).

Now back to the question. We have a decent amount of money in savings, but not enough for a full 20% down on the investment and, ideally, we would like to keep that liquid as it is our personal savings. I want to take action on acquiring our first doors! I'm confident that we could get approved for a loan on a second property, but what is the best option for us regarding money for our down payment? I've considered HELOC, and have read a bit about a cash-out refinance on our current home, but wanted to ask for advice from BP community members that have been in my shoes. How did you get started building your dream?

@Gil Estupinan

This is a great story, Gil! Its awesome that you are working so hard to carry on your father's legacy. He obviously instilled a strong work ethic in you and I'm sure he is smiling down upon you and your accomplishments with great pride! Keep moving forward and thanks for sharing!  

Hey BP!

My name is Andrew. My wife, Fawn, is a real estate agent and as our passion for RE continues to grow, we're looking forward to investing and growing a portfolio of properties. I am hoping to purchase my first rental unit (potentially duplex) by years-end. I am 28 now and my goal is to have 10 doors by the time I'm 33. I look forward to all the great conversations and learning opportunities that may present themselves by being a BP member!