All Forum Posts by: Jon Hill

Matt, 

Congrats on passing! Best of luck as you get started in the business. Use BP as a place to learn and ask questions. It can be an amazing resource!

I need to replaced some flooring in a rental property and am looking for some recommendations. It is a half bath on the main level. It currently has vinyl flooring that needs to be replaced. I have read that a bathroom is one place that putting a higher end flooring in can make a difference and keep the cost low because of the small square footage. Thoughts? Recommendations?

Thanks for the help!

Investment Info:

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

Purchase price: $165,504
Cash invested: $12,500

Property was purchased through a partnership. My partner brought the financing along with being the property manager. I brought the knowledge along with finding and analyzing the deal. It was a great way for each of us to get into a property. We are renting one half of the duplex to a pair of college kids close to the property.

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

It allowed me to increase cash flow while keeping the up front cash low

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

We found the deal on Zillow and used a connection I had to have an agent negotiate on our behalf

How did you finance this deal?

Through a partnership

How did you add value to the deal?

Bring the agent, experience and finding the deal

What was the outcome?

We were able to purchase another property that is providing cash flow

Lessons learned? Challenges?

We inherited a tenant that tried to not pay prior to moving out. Ended up having to give notice and non-renew her lease. Was a challenge but grateful to learn from experience.

Investment Info:

Single-family residence buy & hold investment in Denver.

Purchase price: $150,000
Cash invested: $10,000

Property started with house hacking with the goal of being a live and flip and realize had the ability to rent out as is while slowing updating property

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

The idea of house hacking allowed me to save the additional money up to do the repairs for the live in flip piece

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

My real estate agents found the deal on the MLS that was pre-foreclosure. Did not negotiate as the amount I paid is what the seller needed to ensure the paid everything off

How did you finance this deal?

I used a mortgage broker with FHA financing to ensure I had to bring as little of my own cash as possible to save that for repairs

How did you add value to the deal?

We added new carpet upstairs, along with painting the entire house. Updated one of the bathrooms and installed new door handles on cabinets

What was the outcome?

Property is now being rented out to tenants we know that wanted to live in the area as we continue to updated the property

Lessons learned? Challenges?

Money is absolutely made on the buy. Would not have been able to rent it out if had not gotten it for the price. Live in flip along with house hacking is a great way to minimize the amount of cash require, but can be very taxing as we did almost all the work yourself. The stress of coming home every night to a construction zone can wear on you emotionally.

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

Yes, I would with Scott and Denise Franks at Signature Realty and Lisa Gaimara at Supreme Lending. Would not have been able to find or finance the deal with out all of these amazing people!