All Forum Posts by: Christian Salvo

A user here on BP, Robert Kirkley, told me "I would recommend going to the CFRI meetings in Orlando, as well as talking with @Bernadeau C. He has a group that meets up once a month"

I have not gone to a meeting yet so I can not tell you whether they are good or not.

So I was listening to the Rich Dad Radio Show and he had an economist (Harry Dent) on who states there will be a market crash towards the end of 2019. This is not the first time I've heard someone say there will be a market crash this year so my question is: how will this affect buying and selling houses? I plan on doing some flips this year but I'd hate if I bought a house and the market crashed before I could sell it and it loses all of its value. I really don't know much about what happens when markets crash, I was 14 in 2008 and I really didn't pay much attention. What would you suggest a house-flipper do under the assumption there will be a crash? How can I take advantage of it and what should I avoid?

First of all, well done on the presentation of the numbers, what software did you use to create these tables/charts?

Second, Ill tell you what I would do: 

If there is one thing I've learned, it is that it is very important to refinance BRRR properties so that you can use the money to reinvest in more properties. Therefore, I would suggest you take the route of refinancing but that is only if your main goal right now is to build up a property portfolio and increase your passive income to a high level. It all comes down to whether you want to free up your money to continue investing for the long term or to maximize the profit from the property for the mid-short term.

The HOA is fairly strict with rental agreements, I have yet to try a short term rental but I believe as long as there is a contract there wouldn't be an issue.

Yes the HOA Fees have increased by about 20% since I purchased and there was a special assessment last year. But because of the renovations in the complex, I have been able to increase the rent about the same amount.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $44,900
Cash invested: $3,000

This is a 2 bed 1 bath first floor unit near the airport (MCO) in Orlando. It has been renovated twice, once when I purchased (mainly bathrooms) and again in 2018 after a tenant left the kitchen in very bad condition.

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

Was a very very good price near the airport of Orlando (MCO)

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

A family friend who used to be a realtor helped me find it. The seller was very motivated to get rid of it so cash up front was very appealing to them which helped us get a price decrease.

How did you finance this deal?

The will of a deceased family member

How did you add value to the deal?

Recently we put in new kitchen counter tops, refinished the cabinets, painted the entire apartment. When we bought it we put in vanities and vinyl flooring in the bathrooms.

What was the outcome?

The unit has been occupied since I bought it and has been a pretty good source of passive income.

Lessons learned? Challenges?

Pay very close attention to the condition of water heaters and air conditioners. The water heater was bad when I bought it and cost me $1,200 straight out of the gate. Other than that, be sure to check up on the property periodically if you are self-managing. The previous tenant treated the kitchen very poorly and I did not know until I reviewed it when their lease was up. I kept the deposit though which covered about 80% of the renovations I ended up doing.

Investment Info:

Single-family residence buy & hold investment in Orlando.

Purchase price: $53,500
Cash invested: $2,100

This property is a 2 Bed 1 Bath second floor apartment right next to one of the largest universities in the U.S. (UCF) and also next to a plethora of great restaurants and an out door shopping mall (Waterford Lakes Town Center).

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

It was a really affordable housing price that was in an amazing location. We paid cash in full which helped me avoid giving my money to a student housing company and keep it in my pocket. It also gave me an opportunity to start my portfolio with a more affordable property and learn the ropes.

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

A family friend who was a realtor at the time helped me find it.

How did you finance this deal?

Money from a family members will.

How did you add value to the deal?

I lived in the unit for 3 years during my studies at UCF. During that time I renovated the apartment mostly myself but also got hired some contractors to put flooring in.

What was the outcome?

I currently have a tenant there and it is providing me with consistent income.

Lessons learned? Challenges?

Being that it was my first investment property I learned way too much to fit here but the main take-aways are:

-Outsource complicated renovation work to a professional instead of doing it yourself.

-Keep a digital spreadsheet of the financial information to better keep track of the cash flows.

-(If you manage the property yourself) Find a good handyman for maintenance whilst you own it.