All Forum Posts by: John R Kepler

I know I am dating myself but I started my REI journey in 1980 when rates were 15%. The strategies that worked for me in those double digit times were house hacking and carry backs. I also found a buy and hold that would cash flow barely but annual appreciation kept pace or exceeded the rate of inflation. Interesting times indeed. Here is a link to an interesting article describing/comparing the 80's to the present. https://www.laconiadailysun.co...  I made money in the 80's. The first and only time I have lost money was in 1993 when I was living in Oceanside Ca. I bought in to the market with my tried and true method of house hacking. The Soviet State collapse  "peace dividend" for me equaled a shrinking of military procurement contracts which tanked the SoCal real estate market and caused a brain drain exodus that carried over to the rental market. I was transferred to Florida in 93. I couldn't sell (profitably), I couldn't rent (profitably) and I couldn't sustain holding the property and own or rent housing in Fla. I chose to sell at a discount, walking away from my equity and starting anew in Fla. The lesson here is I misread the effect of world events on local real estate. The other lesson was stop the bleeding quickly, adjust your strategy and move on. A little shy of REI I was satisfied to be just a home owner through the rest of the 90's. I probably should have stayed in the game but when it is all said and done you (and your spouse) have to be able to sleep at night. By the time the 2000's came around we were emotionally able to begin investing once again, but we are cautious and much more worldly in our strategy. To sum things up, because I am an old fart, I see nothing new here really.

Investment Info:

Single-family residence fix & flip investment in Thomasville.

Purchase price: $105,000
Cash invested: $124,000
Sale price: $179,900

Just went under contract at $177500

Having been in the trade I think what I appreciate most is good communication. I am not saying it is the most important quality but it is one I appreciate the most. Things go wrong.You open a wall and can't believe what you see....or don't see. I am just a phone call away. There are so many areas where gremlins will jump out and bite your ankle. Some times it's my fault, or theirs or just a legitimate change order that only became clear during the process. Whatever. The sooner we are on the same page the quicker we get back to moving forward. It's a pretty satisfying experience when two reasonable people work together toward a goal.

Investment Info:

Single-family residence other investment in Pensacola.

Purchase price: $68,500
Cash invested: $25,000
Sale price: $86,000

Large (for the period) contmporary ranch 1850sf 3/2 with attached 2 car garage. This was a house hack. The home was only 15 years old but had not been cared for. Cedar t-111 with no finish left, termites in the chimney chase, rotten fence, minor drywall repairs, over grown landscape, bad condensor unit but the roof was still good. Sold when transferred to Japan. We did a $10k carryback at 12% for 7 years. Total take was $101,184 less repairs and purchase. I would put my net profit around $22k.

Investment Info:

Single-family residence other investment in Pensacola.

Purchase price: $68,500
Cash invested: $25,000
Sale price: $86,000

Large (for the period) contmporary ranch 1850sf 3/2 with attached 2 car garage. This was a house hack. The home was only 15 years old but had not been cared for. Cedar t-111 with no finish left, termites in the chimney chase, rotten fence, minor drywall repairs, over grown landscape, bad condensor unit but the roof was still good. Sold when transferred to Japan. We did a $10k carryback at 12% for 7 years. Total take was $91,184 less repairs and purchase. I would put my net profit around $22k.

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

House hacking worked on my first house with a positive outcome. This time I was more knowedgeable and had acquired more skills and tools.

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

MLS and a very good realtor

How did you finance this deal?

Conventional

How did you add value to the deal?

I had all the defects repaired in a year and brought the landscape and lawn back a little more each year I was there. It was quite nice by sale date. Great curb appeal.

What was the outcome?

Profit

Lessons learned? Challenges?

I learned that if you don't have an immediate need for cash, holding a 2nd is a great way to sell high in a tough market. Rates were still in the high 9's and 10 at the time. It was a buyers market. My buyer had good earning but weak (not bad) credit rating. He just couldn't qual for the full amount.

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

A fantastic husband and wife team that we still keep in touch with. They taught me a lot.

Investment Info:

Single-family residence other investment.

Purchase price: $68,500
Cash invested: $25,000
Sale price: $86,000

Large (for the period) contmporary ranch 1850sf 3/2 with attached 2 car garage. This was a house hack. The home was only 15 years old but had not been cared for. Cedar t-111 with no finish left, termites in the chimney chase, rotten fence, minor drywall repairs, over grown landscape, new condensor unit but the roof was still good. Sold when transferred to Japan. We did a $10k carryback at 12% for 7 years. Total take was $91,184 less repairs and purchase. I would put my net profit around $22k.

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

This was my second house hack. The first one was positive and this time I was more knowledgeable and had acquired more tools and skills. We needed a place to live and I wanted to stay active in realestate. House hacking was a way I could do both.

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

With the help of a husband and wife realty team that we still correspond with. They became great friends. They taught me even more about realestate.

How did you finance this deal?

Conventional

How did you add value to the deal?

I had everything done in about a year. It was a great home and we had great neighbors. A win all around.

What was the outcome?

Profit

Lessons learned? Challenges?

I learned that if you don't have an immediate need for cash, carry a 2nd is a way to sell high in a tough market. Rates were still high back then and my buyer had good earnings but weak (not bad) credit. He couldn't qualify for full price. I knew I was going to Japan for 3 years and Hawaii after that so I had no immediate need for the cash.

Investment Info:

Single-family residence fix & flip investment in Thomasville.

Purchase price: $105,000
Cash invested: $124,000

Currently on MLS at $179900. I would be happy to BRRR this one.

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

Given the market status in December it was a no brainer.

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

My agent brought it to me the morning it hit the MLS.

How did you finance this deal?

All Cash

How did you add value to the deal?

New roof, porch railings, shutters, yard cleanup and finished the carport laundry room with paint, lvp flooring, new lighting and FRP walls. New sub-floor and laminate plank flooring inside. Carried the lvp into the bathroom. Striped, repaired and painted original wood sash windows. Remodeled kitchen and new stainless fridge/DW/stove. Full house repaint and brushed nickle door and sink hardware.

What was the outcome?

It is currently for sale at my price. I am inclined to move into a BRRRR for anything less.

Lessons learned? Challenges?

We need to move through projects more quickly by getting out of doing so much of the work ourselves. Who knows how many deals I didn't see while I was busy working on this one.

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

Yes. Contact me if you are investing in the Thomasville Ga area

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,000
Cash invested: $6,000
Sale price: $34,750

3/2 attached garage

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

I was young, no kids and motivated.

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

MLS

How did you finance this deal?

Conventional

How did you add value to the deal?

Depended on my agent mostly. The Rent was higher than my mortgage was about all I understood at that age.

What was the outcome?

I made a little and learned a lot.

Lessons learned? Challenges?

I was convinced realestate was an avenue to financial security.

I wish you well in your search. I forgot to mention that our closing agent is a primary realestate attourney and investor. I have just been honest with folks, admitting that there are many more things I don't know than do know and that I am building a team to fill my short falls. People have been eager to help in pointing me to the best people they know. Some of that may be that I have deliberately chosen a smaller market/city where folks know most everyone who needs to be known.

  I have watched the videos and read the books. We have decided to scale up. One constant that I keep hearing is build a good team. I am listening and I am working on it. I know who my Agent is and who my property manager will be. We have found a CPA who is also a realestate investor. My insurance agent is a realestate investor. I have a roofer and a lanscaper. I have my electrician, plumber and HVAC guy. Looking for a GC or CBC. Have I forgotten anyone?

   I am a lone wolf by nature and I know that I am just getting in my own way if I want to scale up. I know that I am a compasionate man too and have burned myself more than once not being as firm as I should. The point is I need a team to do more but I also need a team to be strong where I am weak.