All Forum Posts by: Justin Larese

Jacob I am using Navy Federal for an investment and you can do everything online.  If it's 50 miles or more away from primary residents they will consider a 2nd home. Inside They want 25% down for an investment. So I told them I wanted it for a new primary bc it was closer to work. Now I get to put only 5% down. Tell your lender what they need to hear to make it work. 

My first home had a smoker in it for 20 years. You would get a nicotine buzz just standing in the house. We put distilled vinegar in a spray bottle and sprayed the walls. You could see the nicotine tar pull off the walls and drip brown to the floor. Took us a week of spraying the walls and ceilings with vinegar and wiping tar off. Smelt like a New York deli when we were finished. Bleach didn't make a dent. We followed behind with a Kilz primer and then Painted over it. Changed the carpet out and it did the trick. If you already painted over the walls without cleaning try hitting it with the oil base kilz primer. The primer is potent but should seal the ceiling and walls. Only other thing you could do is replace the plumbing lines of the hvac. Might still be stuck in the vent pipes. I bet money on wall and ceiling treatment though. Think of it like painting a light coat over a dark shade and it still shows through but it also stinks. That's what a nicotine paint job is.

Mississippi property was in Horn Lake, Desoto County area. I commuted to Memphis for work when I lived in it. Horn Lake/ Desoto area has been slowly building up around the area. most people seem to live on the outskirts of Memphis and commute in for work. I sold the Mississippi property for a profitable flip. Horn Lake is considered a starter home neighborhood, had and still has a good potential for flipping. would avoid any tenant with a dog. Don't know why but Everyone seems to let their dogs run loose in that area.

Scott Rose, with most transactions the seller pays agent expenses so your agent is a free tool as a buyer, which is why I make a point to find The best agent in the area who I can put to work bc even though I make a great relationship and future partner for future deals the seller pays for their service in the end.

Your agent should be able to receive a record of property usage of utility through the city utility per year to compare shoe box paper. Basic electric, water, gas, and sewage.  If you can verify through leases that units are maxed out during the same time you can figure the average usage per unit. I'm currently vetting a property and I am in the process of running specific numbers bc my potential tenant lease has landlord covering all utilities. Keep doing your due diligence and stick with your gut when it comes to red flags.  Expect to add to the maintenance expense per year, if it seems like he was a bare minimum maintenance  landlord a lot of maintenance expenses can spike if things are left unmaintained for too long. No matter how much you examine a deal there is always a chance you miss something, but you want it to be a small miss and not a bad deal breaker. Good luck.

Investment Info:

Single-family residence other investment in Chesapeake.

Purchase price: $75,000
Cash invested: $10,000
Sale price: $135,000

First home purchased 1k square foot 2 bed 1 bath single family. Lived in one room and rented out the other to cover mortgage for two years after fixing up. After two years I had an appraisal done and took out an equity loan to purchase a 2nd property in Mississippi that I moved into for $55,000. I rented out the first home for $1,000 a month which covered both mortgages. Lived in MS home for 2 years and sold for $68k.

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

Didn't see the value in throwing money away by paying rent. Saw the potential value in the property.

How did you finance this deal?

Personal money saved

How did you add value to the deal?

Updated kitchen, replaced flooring. Added gutters. Installed drainage to swampy backyard and added concrete back patio and privacy fence for appeal

What was the outcome?

Brought the property standard up and therefore set a higher standard for tenants. Built equity through appraisal. Living in property for two years of last five allowed to exempt capital gains.

Lessons learned? Challenges?

This property being my first really gave me the crash course for the process as a buyer, a live in landlord, out of town landlord, and eventually as the seller. Each new job title came with new challenges and filled the unknown for expenses, paperwork and taxes

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

For a lender I've used Navy Federal Credit Union. I have been able to run through an application online and through phone without needing to see anyone in person just as fast if I lived down the street from a branch. Checks deposited by taking a picture making no trips to the bank.

Agents: Amanda Hayden for north MS. Christy Perry for Hampton Roads VA. Chris Lock Springfield MO area.

You could use a full year lease and tweak it to fit your short term needs. Just make sure you are thorough when making changes to fit your needs. You can break the rent down by a weekly rate, a lot of motels run rates that way rather than monthly. Just check with local laws to see if they have anything that could impact your lease agreement. Tenant friendly areas might require a 30 day notice of eviction regardless of length of lease etc. something to think about.