All Forum Posts by: Gabriel Perez

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $169,000
Cash invested: $55,000

Property needed cosmetic repair. Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range). Property was more disgusting than we anticipated and we had to put extra money into deeper cleaning. May consider selling in a few years once rates cooperate with higher purchase prices.

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

I am a fan of the cosmetic repair buy and hold

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

Found it on Zillow searches and my agent on the ground got me into a virtual tour quickly

How did you finance this deal?

Used a HELOC on a primary, and was sure that even with that additional debt-service, there was + cash flow.

How did you add value to the deal?

Deep cleaning, new paint, lots of cosmetic repairs.

What was the outcome?

Being held, and renter is paying our PM enough to bring cash flow.

Lessons learned? Challenges?

Might possibly make a term of negotiations that a thorough deep-cleaning takes place.

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

Worked with the go-to realtor, go-to property manager, go-to lender, and used the GC that the property manager recommended.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $169,000
Cash invested: $55,000

Property needed cosmetic repair. Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range). That brought the monthly mortgage to within range of over $200/month cash flow. Property was more disgusting than we anticipated and we had to put extra money into deeper cleaning. Overall it did take a bit more cash than we wanted, but we are very happy with the result and may consider selling in a few years once rates cooperate with higher purchase prices.

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

I am a fan of the cosmetic repair buy and hold

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

Found it on Zillow searches and my agent on the ground got me into a virtual tour quickly

How did you finance this deal?

Used a HELOC on a primary, and was sure that even with that additional debt-service, there was + cash flow.

How did you add value to the deal?

Deep cleaning, new paint, lots of cosmetic repairs.

What was the outcome?

Being held, and renter is paying our PM enough to bring cash flow.

Lessons learned? Challenges?

Might possibly make a term of negotiations that a thorough deep-cleaning takes place.

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

Worked with the go-to realtor, go-to property manager, go-to lender, and used the GC that the property manager recommended.

We are under contract on a property with amazing upside. We have it under contract at $112k. ARV is around $200-250k. It needs electrical. Haven't decided on STR or LTR. Who should I speak to for lending?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $70,000
Cash invested: $15,950

Small SFR with large garage. SFR has foundation issues but the property was purchased for the garage. The numbers showed that the rent for the home would provide at least $126/month in cashflow, and the 12 month plan is to convert the garage into a 2-3 bedroom home the pro forma rent to be around $900. After a year the goal is to refinance to a debt service of $500/month, and gross income of $1,700/month

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

Saw it as a longterm play to own two doors at the all-in cost of around $130,000

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

Zillow saved search criteria

How did you finance this deal?

Hard money loan for the down payment, commercial loan at 9.25%. Plan is to refinance into a residential mortgage at a lower interest rate

How did you add value to the deal?

Convert the garage into an additional unit (2-3 bedroom)

What was the outcome?

Still in-progress, SFR has been closed on, currently making ready for renting out. Once Spring comes along, might begin the garage conversion.

Lessons learned? Challenges?

Having more dry powder for when opportunities pop up.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $120,000
Cash invested: $12,000

It's going to be tough to return to investing in my local state (CA) after seeing the return on this Wyoming property. Not a political statement but...red is a whole lot money-smart than investing in blue states. Overall, we are collecting $1,500/month in gross rents, mortgage is around $600/month, expenses are around $350/month, so the pure cash flow is around $550/month.

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

My wife is from this area, so the area was already on my radar. Like the area and truly believe it is going to be a steady area (no huge appreciation, but plenty of cash flow)

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

Made strong relationships with local agents, and really narrowed down to an agent that I got along with. He told me about this property that was going to hit the market in a few days. The numbers made sense for me to write a full-priced offer the minute it hit the market, and put it into contract my the afternoon.

How did you finance this deal?

Had about $5,000 of my own money, and borrowed (hard money) from an acquaintance that I trust. Could have paid him back his loan in a few months but chose to let the loan run about 6 months longer so that he could realize some interest; this was considered a long-play so I could continue to tap into his funds for future small hard money loans.

How did you add value to the deal?

Solved a few problems, removed a major tree that was causing issues to the power lines, replaced a roof, nothing major.

What was the outcome?

Still owning the property, and it has continued to bring in about $600/month in pure cash flow

Lessons learned? Challenges?

Learn about seasons haha. We closed escrow in Nov and winter was rough. Roof was delayed about 1.5 months.

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

NA

I have a property I'm interested in for a BRRRR.

Rough figures:

$45,000 purchase.

$30,000 repair cost.

ARV above $110,000.

Already know a PM in the area and they’re letting me know rents can be around $700-750 so I feel good about it all.

The problem that I’m running into is that no hard money lenders will invest under $100,000 in any deals and this one is about $75,000 in total. They say it’s not worth the small investment. Do you guys run into this problem?

33 years old, I own two doors (duplex) and am currently living in one while renting out the second unit. Plan is to move out and rent both out in two years.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Azusa.

Purchase price: $542,000
Cash invested: $25,000

Purchased a duplex as my first primary residence to house hack the mortgage. Cash invested was tricky because we are expecting our first child so some repairs were unnecessary (extras) that would likely have not been made had it not been our primary residence. Decided to gut the kitchen, redo the floors, and update the kitchen's electrical as well. Super happy with the result so far!

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

Wanted to try my hand at a hybrid House Hack and BRRR

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

Found it via the MLS once escrows began falling through during the Coronavirus pandemic. Befriended the other agent very quickly which gained us more information about the Seller's desperation.

How did you finance this deal?

Parents' helped with some cash down. Seller paid for closing costs. 96% of the deal was conventional financing at 3.125%

How did you add value to the deal?

We redid the landscape with sprinklers and grass. Removed a wall to open the kitchen to the dining room and renovated the kitchen.

What was the outcome?

Still in remodel

Lessons learned? Challenges?

Still learning some