All Forum Posts by: Nicole Gilberts

Investment Info:

Single-family residence buy & hold investment in San Diego.

Purchase price: $1,165,000
Cash invested: $300,000

Historic community rehab in San Diego. This property needed extensive work as it had been neglected for decades. We were familiar with the upside potential of the neighborhood and immediately jumped on the opportunity to transform this home into a modern craftsman!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $1,165,000
Cash invested: $300,000

Craftsman community rehab in San Diego. This property needed extensive work as it had been neglected for decades. Not only was the property flea infested, but borderline hoarder house. Fortunately, we were able to see the potential!

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

We were familiar with the upside and potential of the neighborhood and immediately jumped on the opportunity to transform this home into a modern craftsman!

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

We found it through a local wholesaler.

How did you finance this deal?

Hard money followed by a refinance.

How did you add value to the deal?

Completely gutted the home and modernized the interior while keeping the exterior charm.

What was the outcome?

This is the type of home you hold on to for generations.

Lessons learned? Challenges?

This was yet again another Covid Era learning lesson given the price of materials, lack of labor, and supply chain issues. Full rehab took about 6 months in total.

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

I was able to identify the property through a wholesaler off market.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $425,000
Cash invested: $80,000
Sale price: $690,000

Cosmetic fixer inside which just needed a little character and charm. The bones of the house were in great condition as it was mid century architecture. We knew the value add would be a pool considering this is Palm Springs. We had a fully permitted and newly installed pool within 5 months during the middle of covid, not bad! Overall, we were really happy with the end product of this home.

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

I love the mid century architecture of Palm Springs and when I saw this property I immediately saw the potential by adding a pool and some cosmetic upgrades.

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

Found it on the MLS and it fell out of escrow twice prior to us picking it up. The agent called me the second time it fell out and let me know it was ours if we wanted it.

How did you finance this deal?

Hard Money

How did you add value to the deal?

By adding a pool spa in the backyard with a view of the mountains.

What was the outcome?

We had three offers within the first weekend in the middle of August (which is the hottest month in the desert). Ended up accepting an all cash offer.

Lessons learned? Challenges?

There were many challenges with labor and the city getting the permit issued for the pool. We had to be diligent and stay on top of the contractors, but we still got it done in a reasonable amount of time.

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

I was able to identify and close the property myself, as I am a Realtor.

@Jake Johnson I have a 2/2 with brand new pool that will be ready to go in the next month or so. Mid-century with (unpermitted) plans for master suite. Feel free to DM if interested.

Hello, we’re looking at a flip in the Palm Springs, CA and would love to get some referrals on contractors you’ve worked with in the area. It will be minor renovations consisting of flooring, fence, countertops, windows and pool installation. Would love to hear from you if you have someone in mind.

Thanks!

@petereberhardt Thanks! Luckily the lender was able to use our first appraisal. The studio went through the full permit process and is its own unit with a separate address, so they were able to give it full value. 

@Jakejaenicke Thank you! I wouldn't be able to comment on OOS investing since I've only invested in CA so far. I would say that if you can find a value add property especially if your a contractor yourself, there is still tremendous upside in CA. Are you looking for a flip or a BRRRR?

@Colebritting Thank you! Yes, what a learning experience but now I'm hooked!

@Jaredaquino Thank you! Yes, we found it on the MLS in July of 2019. That being said, I still think there are deals out there today and would be happy to share anything I come across if you'd like.

Investment Info:

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

Purchase price: $810,000
Cash invested: $120,000

Completed BRRRR method and also added an extra unit to the property for a total of 3 units currently. Lot is zoned for up to 6 units which we plan to develop in the next year or so.

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

We wanted to complete a BRRRR on a multiunit property in SD that would cash flow and appreciate in value. Once we spotted this property we saw immediate value and upside since its a very charming Spanish bungalow. It also had an extra room that would be easy to convert into an additional unit which become a studio.

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

It was my full time job since we were on a time crunch with the 1031. Once we identified, we put in an offer $50K under asking. It was between us and a flipper and our agent wrote a bio on our behalf which ended up getting us the deal. We had to come up $10K to match the flipper, but still ended up getting the property for $40K under list price. We got in at just the right time and had a strong agent.

How did you finance this deal?

We did a 1031 exchange from our vacation rental property in Palm Springs to this 2 unit in San Diego. Proceeds from the exchange acted as the down payment and the rest was 30 year conventional financing.

How did you add value to the deal?

We remodeled the 100 year old Spanish bungalow and turned the living room into an extra bedroom, took down a wall in the kitchen to open up the floor plan, and added french doors off the dinning/living room to give it an indoor/outdoor feel. For the second unit (which was existing) we rehabbed the floors, kitchen, and bathroom and painted for $10K. The 3rd unit (studio) had to be permitted through the city and was completed within 3 months. All 3 units are now rented! 3/1, 0/1,1/1 in total.

What was the outcome?

It worked! We got the refinance done with $160,000 cash out and a new appraisal price of $1,375,000.

Lessons learned? Challenges?

We were about to complete our refinance March 2020 when funding was pulled due to Covid and we were stuck with about $90,000 in debt from our rehab. It took us until June to find another lender and 3 points to complete the refi.. We persevered and it ended up working out in the end, but not as smoothly as we planned.

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

Scott Demoss and myself!