All Forum Posts by: Daniel Snyder

Thank you sir. I am just getting used to browsing on here but so far it is information overload. Not a bad thing but it just takes time. :) 

I kinda would be thought of as a live wire. We have a single family home, a small commercial retail building, and now we are pursuing a 5 unit apartment complex. I guess I just want to try a little bit of everything to see what works out best. 

I began by wanting 5 residential units so each of my children could have one and then there would be one for me to retire on. But this is so fun that I don't know if I can stop myself at 5.

Just having fun learning about real estate and trying to build a future for my grandchildren.

Investment Info:

Retail commercial investment investment.

Purchase price: $250,000
Cash invested: $88,000

Commercial flex space. This vacant property was purchased under market value and needed a little love. After a few long months we secured a long term retail tenant to call this place home.

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

We have wanted to own a downtown property for a while and stumbled upon this deal.

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

This property was poorly listed. (Not on the local MLS) While in Nashville at a doctor appointment, I guess the algorithms were in my favor and it appeared on my phone.

I immediately sent it to my realtor and we schedule a showing later the same day. He and my mentor said I would be a fool to pass this up. If I didn't put in an offer they would fight over it. It had had very little attention since listening out of town. We offered slightly below asking and they accepted our offer.

How did you finance this deal?

12 month bridge loan with interest only payments. Renovations completed using our HELOC. Will refinance to permanent financing soon.

How did you add value to the deal?

This building needed new roofing. We also had to replace two rotten walls and some rotten floor joist and subfloor. We added windows to two rooms that previously had none and replaced 3 existing ones. We had to replace the hvac unit. Added new flooring throughout the back portion of the building along with paint.

What was the outcome?

Long term retail tenant in place. We have yet to have another appraisal completed but I estimate a new evaluation of $350,000.

Lessons learned? Challenges?

Soon after purchase, I started advertising the space for lease and we received overwhelming interest. (Perfect location, great space) I chose what I thought would be the perfect tenant. We begin to work with the future tenant and made specific updates and changes to suit this tenant. However, we had yet to secure a signed lease. When the day to sign the lease finally arrived, she called me and said she had to back out. Needless to say, I was defeated.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Judd Dial with The Property Company in Cookeville TN

back side of unit 2

This is my first post here. I have been listening to the various podcasts and reading up to learn as much as possible. We currently own a single rental unit which we completed a full renovation on in 2021. 

I have found a two-unit townhouse off market in dire need of help. This is an off-market

property. I spoke to the city and they are considering condemnation procedures. The outside of this structure needs lots of work. I have contacted both owners. One owner is ready to sell. He invited me in and his unit only needs interior updates. This is no longer his primary residence and he knows it needs work and it would be hard to sell on market. The second owner has not lived in her unit in over 12 years. I have only spoken to the owner of unit two via email. She is very sporadic in her replies. She is interested in selling but from the best I can tell this is not going to be an easy task. Apparently she is very sick and will not leave her house or meet me until she is better. (No idea how long that might be)

I can get a contract on one unit but it would be contingent on being able to purchase both units since they share the exterior and both sides need a complete exterior overhaul. I am looking for suggestions to help me move this forward or if anyone has an experience to share that i could learn from.  Thanks in advance. I will attempt to reply with additional pics.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000
Cash invested: $25,000

Purchase to buy and hold. Completed a 3/4 gut renovation. Begin as a 3/1. Value add to a 3/2. Renovation took almost a year because we completed much of the work ourselves. Completed new windows, interior doors, plumbing. It has been rented ever since.

March 2022 Post reno appraisal = $190,000

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

I have been wanting to begin real estate investing fast several years. The covid boredom got the best of me. We were finally able to find a deal we could manage to get under contract. Buying a fixer upper is right up my alley.

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

This property was on the MLS. I guess really we just got lucky. We made an offer based on what our down payment could buy. The family selling the house had had a death. Two sisters were selling the house of their late mother. The one thing that stands out from our first showing was the smell. There was an overwhelming odor of cats.

How did you finance this deal?

We deal with a small local bank. They offer a renovation loan that converts to a standard mortgage upon completion of the project. They require 20% down then will finance up to 80% of the ARV.

How did you add value to the deal?

We completed 3/4 of a gut. Added new plumbing, new electric, new windows. We also added a second full bathroom. Removed a few walls and painted the kitchen. All new flooring installed.

What was the outcome?

We exceeded our initial outcome. Yes this project took longer and cost more, but the ARV was a surprise for us.

We were able to get renters in within 2 months of completion. Funny story here though; we had actually dropped the rent to attract more views. We advertised as no pets allowed and that lost us a lot of lookers. We did a facetime showing and this family was so impressed and in love that they offered $100 over asking rent. The only caveat was they have a cat. Well we took the offer!

Lessons learned? Challenges?

Budget for surprises. Time, money, materials, contractors.

Don't be afraid to tear out something and completely redo instead of patching.

Be patient when it comes time to market and get it rented.