All Forum Posts by: Ginger Walker

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $70,500
Cash invested: $3,000

3 bed, 1 bath, 1 car garage home.

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

Doing the slow and steady approach to real estate buying 1 - 2 properties a year and overtime replacing salary income with rental income. Look for homes around the $70k price point because they typically tend to be working class neighborhoods that are safe and solid homes and aim to get $800 or more a month in rent.

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

Worked with an agent and found it on the MLS. Original offer was rejected but the property had been on the market for awhile. Let the owner know if they changed their mind our offer would stand. They returned a month later and we were able to negotiate and come to a price we were happy with.

How did you finance this deal?

Bank financed with a Commercial loan: 20 year Am. We own land with about $90k in equity and were able to add that as collateral in lieu of a down payment, decided to put some down to cover the closing costs but was not required by financing.

How did you add value to the deal?

Cleaned up property to remove the cat pee smell and did some minor repairs but mostly move in ready.

What was the outcome?

Rented out after 1 month on the market in the off season.

Outcome: $800 rent. Expenses:mortgage $505, insurance $72.50, taxes $50 / mo = +$172.50 / mo less repairs and maintenance.

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

Dylan Brady - Agent: OKC area, investor friendly and patient with us. Highly recommend working with him.

Shawnee-ian here as well! I am looking at trying to pick up an investment property a year. Anyone in the thread have suggestions for a Investor Friendly Realtor.

Since this is a year ago I curious if you went for it or not. There is always risk associated with a rental property but since you will be living in one side and renting the other the potential increase in cost would be whatever your combined mortgages are minus what you have been paying for your current place.

We did a similar deal in Kansas. We bought a nice $250k duplex. We lived in one side and rented the other side out. While we were there half rented for $1350 and we could have only paid $300 a month but we acted as if we were renting it as well and put $1350 into the checking account we were paying the mortgage out of. So $2700 was going in a month and $1670 was the payment out. By the time we moved out 1.5 years later it had $12,000 in the account so there is plenty of cushion there for when there are vacancies. The likelihood that all places will be vacant as once decreases as you get more properties. Just be sure you have a sufficient reserves to cover a few months and some repairs and you should be fine.

Thank you! 

@Paul Choate do you have dates set up yet for a June meetup? I want to get it on my calendar!

In 2011 we house hacked with a VA loan, bought a duplex lived in half and rented half. I love my rental and wanted more but have felt stuck. We have land (56 acres) with a lot of equity and have been trying to convince Hubby to sell to use as down payment for more. Guess I have been too close to the problem because that was the only idea I could come up with to get rolling again. New plan. We are using a 2nd on the land in lieu of down payment to pick up a property. My income plus rents will go toward paying down the property then when it is less than 80% LTV we will be able to drop the land as collateral and reuse it to pick up a new property. With this we can pick up a property a year! Plan to eventually focus more on BRRR but for now 2 full-time workers with young kids we are looking at turnkey. Loved the recent episode that pretty much said you don't have to wait and find or create an amazing deal to be successful. really snapped me out on analysis paralysis and begin and after I moved forward and started the ball rolling on finance I think a great deal actually did sort of roll right in my lap.

Thanks Chris, unfortunately the property was a new build and we haven't made any improvements. The area has not appreciated over the last 5 years and some finance fees were financed into it so we have not built up much if any equity.

No, I do not have further information. We have not refinanced out yet and probably won't for a few years. We do not currently have enough to put down 20 - 30% and when we do raise the funds we would prefer to invest in another property instead.

@Shane Cook

If you haven't listened to the podcasts I would suggest starting on #135. Great information, they emphasize 50% of a great deal is better than 0% of no deal. Also, you can gain crediablity so you do not have (much) problems getting funding later if you decide to go solo on a deal.

If you don't have much experience in real estate it would be difficult getting financing on a multifamily property.  One idea would be to focus on networking, if it is a good deal and you can present it to someone with more experience, you could pick up a partner on the deal and together you may be able to obtain financing.