All Forum Posts by: Juan Aguirre

 Hey Thanks Bryan! I’m only a quarter of the way there to catch up to you. Does anyone have tips on how to attain a second investment property. It seems like the only way to go from here is through a conventional investment loan. Which requieres a large sum of capital which in my situation is currently invested into the rehab of my first househack. 

Investment Info:

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

Purchase price: $280,000
Cash invested: $19,000

This was my first deal. I purchased it off market without an agent and I am very proud of the outcome. This is a duplex in Grand Prairie, Texas. I house hacked this property and this will turn out to be a cash flowing asset after the 12 month seasoning period.

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

I fell in love with the idea of becoming financially free through real estate 2 years ago. An FHA loan seemed like the most accesible way to get started. And the idea of getting a multi family with this loan seemed to be the best bang for my buck.

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

I reached out directly to the seller. I found the property off market and went through the whole process without an agent even though it was my first deal.

How did you finance this deal?

Through an FHA Loan and 3.5% down payment.

How did you add value to the deal?

This was a value add deal. I purchased the property for 280k and it was appraised at 315k. It needed a lot of cosmetic work and the right management, which I am doing most of it myself.

What was the outcome?

I am currently living for free and after the 12 month seasoning period I will be moving out and receiving 1k of cash flow before expenses.

Lessons learned? Challenges?

It is not as hard as I imagined. This is where the real work begins. Make sure to treat your business like if you have 100 units, so when you get their you will be prepared.

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

I didn't have a real estate agent, my lender was Amerisave. I didn't have the best experience but they got the loan closes.

Investment Info:

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

Purchase price: $280,000
Cash invested: $19,000

This investment was found off market by reaching out to the seller directly. Although it was my first deal I was able to go through the process without a real estate agent. The property was purchased at 280k with an FHA loan. The final out of pocket cost was 19k, also the appraisal came back at 315k. I am very proud of this deal, specially because of the date purchased seemed to be the peak of my market which is the DFW area in Dallas, Texas. The property had inherited tenants, I discontinued the lease on one of the two sides and moved in. Since then, I have raised the rents 30% on the rented out unit and I am living for free. My plan is to move out after the 12 month seasoning period and start receiving some real cash flow after renovating the current unit I am living in.

Hey I currently live in Texas and this sounds like a good deal. What area is it in? 

 Hey Malcomb, sorry for the lack of clarity, but yes it would be a cash flow of 700$-1100$ on a monthly basis for the whole deal.

 Thank you Scott for your insight, and yes he is willing to do interest only for 20 years so the payment would be in that 2k-3k monthly payment for interest only. Although the cash flow isn’t a substantial amount, I am able to take on 1 million dollars worth of debt at a 3% interest rate in an up and coming area. If I were to hold on to this property for the 20 year term I don’t see a situation where this wouldn’t be beneficial. Or am I missing something?

Hey BP members im coming along my real estate journey and was able to successfully attain my first House Hack (ill post the story soon). This transaction brought me a lead to a motivated seller, that wants to do seller financing. He is willing to meet my terms, so the cash flow is there(700$-1100$ after all expenses including PITI and 20% of annual rental income for maintenance). It is a total of 4 properties and an extra lot, he is looking for 900k-1.3M for all 5 properties. After doing my comps the properties seem to be valued at 800k-900k, but the seller is willing to do a 10% down payment and 2k-3k monthly payments YES 2K-3K monthly payments including principal and interest, 3%-4% interest, amortized by 20 years and the balloon payment at the end of the 20 years. The properties are 5 miles south of an up and coming area (currently it is on the rougher side of the area).Each house will probably need 10k-15k to get to market rents. They are zoned to MF-1 meaning I am able to build multi family here in the future.

-Is it worth going into this amount of dept?

-Creative ways to come up with the 10% down payment (partner, private money)?

-Only my potential second real estate deal, so I am nervous to take on this much property at once?

-Any advice or help will be much appreciated!!

-Property details 2 small duplex 2b 1b each side, 2 SFH 3b 1b each

-Feel free to PM for more details

-This is a long term hold.

Thanks Mat, I was called out on interior and exterior. The exterior will need siding replacing I’m just worried about the interior. If the paint doesn’t match 100% to the original, will this get flagged?

Hey guys my appraiser for my duplex just notified me that before being able to close I have to get the paint chipping fixed on the property. Does anyone know how anal they are about this or to what extent must this get fixed. Do I have to go all out and paint the whole property or can I simply remove the chipping, repaint, and possibly have unmatching paint in those areas of the house. Any replies or experiences would be greatly appreciated. 

Thank you guys for the advice, this property has the potential of 700$ cash flow after the repairs and mother in law suite. Granted I would have to spend a 8k-12k Investment but overall it would be a 15% cash on cash return. I hop this works out and I will be keeping y’all updated!