All Forum Posts by: John Garcia

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $206,000
Cash invested: $20,000

A home that is within walking distance to the University of Houston. Leased out by the room. 3:2 home. There is enough space to add another small 1/1 or 2/1 room in the back of the yard.

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

Moved to the city and house hacked my home, I chose a home next to a location where college students would live.

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

The property sat on the market due to the property sitting on two different lots. The seller also owned the side lot that the property was on, so potential buyers did not want to work with that issue. I decided to sign a contract and I did have issues with the seller' Title company, we were able to change the Title company that worked on these issues. The closing did take 2 additional months, but I was able to buy and have the paperwork notarized regarding my property being on two lots.

How did you finance this deal?

Yes, I decided I was going to live at the property and was able to get a standard FHA loan, since my other properties were investment homes.

How did you add value to the deal?

I cleaned up the house and made adjustments to the backyard. I did buy desks, beds, and small drawers for all the rooms for the college student, including my room, I will be moving out soon. I will be house hacking another home.

What was the outcome?

I was able to house hack the home, live for free, and make some cash flow.

Lessons learned? Challenges?

Fight for what you want and don't be afraid to pull the trigger!

Love House Hacking!

Location is key when house hacking, I purchased another home that is walking distance to UH and I have all the rooms leased out now, I'm will be moving out soon and now I'm working on my 4th SFH for my next House Hack.

Good luck and I like the way you are thinking!

Dear Dustyn,

I decide to keep investing in the Houston Area. 

Thank you,

John

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $230,000
Cash invested: $50,000

A beautiful 3/2 home in an amazing location. A-class property, worked over a year to finally get a home in this area!

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

I enjoy A-class properties, the type of people who usually live in these areas will pay a little more and will usually keep the property clean. You may pay a little more for the property, but long term, I think it pays off greatly for a buy and hold type of deal.

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

I have a realtor and I have been working with wholesalers, but I have noticed a lot of the wholesale homes have been overpriced. So I decided to use my realtor to help me find a decent deal, not a home run. I noticed this home was on the market for 21 days, it was overpriced, so I told my realtor to just offer a decent price, they agreed and we had our contract. I have been waiting for a year to buy a home in this area and now prices of homes are rising again.

How did you finance this deal?

I financed it with a Conventional loan.

How did you add value to the deal?

After purchasing it, I walked into 30K of equity, plus my initial 20%, which I may refinance and buy another property with the equity I just got.

What was the outcome?

I was patient and you never know when a deal may come, so always be ready and continue to make offers!

Lessons learned? Challenges?

Continue to make offers, be patient, and do not be disappointed with rejected offers. It will eventually come with continual analyzing and making offers.

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

Yes, I worked with a real estate professional, he really was patient and helped me with tough decisions that I had to make. He was there for me and not only for the money. I would strongly recommend him. Michael Newcomb in Houston.

@Beau Pearson

I use Zillow management, it works pretty well.

The only draw back that I have is the payment usually takes a week to move into my bank from the their initial payment.

But I rather use Zelle, but not everyone can do that.

@Andre Fierro

Right now, it may be a little hard finding a 1 to 1 rule, it’s a sellers market.

Taxes are going up and the market will correct itself soon, be patient and there will be more homes available hopefully towards the 4Q.

Good luck!

@Gerardo Hernandez Never pay over.

Be patient. I know it sucks, but it the market will level out and you will eventually have more opportunities.

Good luck!

@Marzel Hurbs  Thank you for your recommendation.  I will look into them.

@Tomas Satas

I’m actually using Zillow to have my tenants pay.

Although it’s a 5 day turnaround.

But it’s been great so far.

What I thought of was 75% ARV.

The numbers did the adding by themselves.