All Forum Posts by: Melissa Murphy

Hi Svyatoslav, Try US Bank! I know they do HELOC's. Good luck!

Hi Josh, welcome to BP. You will love the community here. Put me on your list for any deals you find! Again, welcome.

Nice work Thomas! Curious how you got something for 25k? Fire damage, tax foreclosure? Haven’t seen many in that range recently! Kuddos!

Welcome to BP!! This is a wonderful community.  Congrats on the first step and reading the most influential book on real estate ever!

Investment Info:

Single-family residence buy & hold investment in Spokane.

Purchase price: $139,500
Cash invested: $27,000
Sale price: $197,500

My first house! This was a run down single family home on the South Hill. It had a large oversized lot. I remember the kitchen remodel, living in the home and having to make coffee with water from the bathtub. It took us 6 weeks to complete, because we did all the work ourselves. Next, we tackled the basement installing two egress windows and remodeling the bathroom. In 2007, it became a rental property until 2009.

How did you finance this deal?

Traditional 30 year mortgage, and after closing, we were able to secure a HELOC for 20K to do the improvements. Oh the good old days!

How did you add value to the deal?

Remodeled the kitchen, two bathrooms, added two egress windows, patio and fences the whole yard.

What was the outcome?

A great rental property for a few years until it was time to sell.

Lessons learned? Challenges?

Learned the challenges of living in construction for months and months and months.

Investment Info:

Single-family residence commercial investment investment.

Purchase price: $122,000
Cash invested: $210,000

Found this property as a foreclosure, with 3 offers on the table. Had 4 hours to pull together cash in order to execute on the deal. I called a friend for a private money deal to close immediately, allowing me to beat the other offers. I then worked with a great firm in town to execute on tenant improvements turning the space into the nicest real estate office in town! 8 years later, it still impresses visitors.

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

I was in the process of building a new company and looking for an office space. Browsing through the MLS, I saw this property listed as a foreclosure, with the key word, commercial. Currently, a residential unit that the owner had striped.

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

Finding the deal at 10 am, there were 4 offers on the table, and I knew I had to act fast. I called a well know commercial broker in town who had said he was looking for a real estate deal. He was on a chairlift at the time and said, "you need money? Sure. How much? $80K. Ok." Easier than I thought.

How did you finance this deal?

I closed with the cash from the private investor and quickly called several commercial lenders in town. A local bank was willing to work with me on the rehab loan. After hiring an awesome local firm to do the rendering, the bank appraised the property at an after repair value of $300,000 giving me an LTV of 70%, so $210,000 total, less my $122,000 initial investment, so $88k for rehab.

What was the outcome?

I opened the doors of my new company on March 2012, and my company Prime Real Estate Group still thrives in this location. We have space for 16 agents to pop in, along with a conference room, a private office, filing cabinets, reception desk and two exec offices.

Lessons learned? Challenges?

Asking for money was easier than I thought! A few hiccups during the build-out, but they seem like a distant memory now.

Hi Brittany,  Would love to connect with you about your real estate needs.  I have 14 years experience as an agent and almost 15 years as an investor.  I also own a property management company.  Let's connect and grab a cup of coffee at your convenience. Welcome to the exciting world of Bigger Pockets!

Investment Info:

Single-family residence buy & hold investment in Spokane.

Purchase price: $340,000
Cash invested: $90,000

Beautiful single family home close to downtown. This was acquired with the intention of being my personal single family home until I discovered the profitability of airb&b. For two summers of and on, I have rented out this 3 bedroom 2 bath home for an average of $150-170 a night. Soon, I will transition the property to a full time airb&b after some additional upgrades looking for $200 a night minimum.

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

After traveling through Southeast Asia in the summer of 2014, I came back with a new perspective and a new ideal. AirB&B. After staying in Bankok, and meeting an ex-pat who renting out 3 rooms in a trendy part of town, I saw the advantages and opportunities of AirB&B.

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

My friends decided to sell, and I saw an opportunity to sell my existing home, that seemed too big, and right size if you will. Although I started AirB&B's my old home and didn't turn this into an AirB&B for two summers, I was itching to experiment again.

How did you finance this deal?

Traditional financing on a 15 year note.

How did you add value to the deal?

After moving in, I painted the exterior, made a few cosmetic updates and actually reconfigured the doorway for more space parking.

What was the outcome?

The house has been a great income source while I moved to the lake in the summer. Now, my husband and I just closed on a new house that is literally in our backyard. We will remodel the home, and move upon completion of the model and turn this back into a 100% AirB&B.

Lessons learned? Challenges?

The only challenges with AirB&B have been worked out. We have electronic access versus a keybox now, and I will probably upgrade to a more secure system before long. We have a set of cleaners who understand the timing and routine. I also have my property manager help with booking/questions/logistics if I am out of the area. Most of my friends and family have been worried about my "stuff" with guests here, but I have not had any issues after over 95 bookings and my role as a Super Host!

Awesome Karl! I was just crunching some numbers on a few multi families. When I encounter a good deal, I will be in touch!

Excellent question! Actually, the Air Force base (Fairchild) is our largest employer. We are the largest refueling fleet in the nation. Our hospital is second for employment, and then government work through the city and county, and now the new Amazon distribution facility. Education is strong yet diversified from Eastern Washington university, to Whitworth and of course Gonzaga university. We also now have a 4 year medical school. A much more diversified economy if you will. Happy to discuss with you in length at your convenience!