All Forum Posts by: Oscar Morales

I currently have Allstate Insurance for my rental property but i was told that i should change insurance companies because they do not cover non-owner-occupied properties. What Insurance company is best and what do ya'll suggest.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $65,000
Cash invested: $5,000
Sale price: $80,000

This was my first ever purchase at the age of 20. I bought this with the hopes of fixing it and selling it for a profit since the area it was in was on the downturn. I knew eventually this neighborhood would go up in price since it was close to downtown Houston.

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

I knew that purchasing a property in a downward neighborhood was a risk but eventually the price of the homes had to come back up because of the location. LOCATION, LOCATION, LOCATIOn

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

I actually did not find this deal. I was out of town working and my father was the one that found it.

How did you finance this deal?

This was purchased using and FHA Loan.

How did you add value to the deal?

I was able to add value by repairing the foundation and rehabbing the restroom and kitchen.

What was the outcome?

The property appraised at a higher value after all repairs were complete.

Lessons learned? Challenges?

Keep the properties longer if you expect that the neighborhood will be gentrified, or new businesses are coming to the area.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $95,000
Cash invested: $10,000

I bought this home as a primary residence as a valentines present to my wife a few months before my daughter was born. I lived in the house for a few years and now operate it as a long-term rental property. I completed a cash out refinance on this property this year after it appraised at more than double what I originally purchased it for.

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

I originally purchased this property because I was recently married and had to find a place to live with my wife and future daughter. This was my second property.

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

I found this property by using the MLS.

How did you finance this deal?

I purchased this home using a conventional loan.

How did you add value to the deal?

I added value to this deal by updating the curve appeal of the property. I removed the old aluminum carport and extended the driveway. I also installed new sod to the back yard and installed an iron gate and door as well as a wood fence after I removed the old chain link fence.

What was the outcome?

With the new curve appeal and newly updated landscape it was able to attract a lot of small families to want and rent the property.

Lessons learned? Challenges?

A lesson I learned from this was to always stay on the lookout for deals even on the MLS. The realtor that was helping me locate a primary residence did not mention this neighborhood. She wanted me to buy a larger home in a nicer part of town. I think in order to earn a bigger commission on the deal.