All Forum Posts by: Henry Paschall

@Brett Nissen my wife and I are currently house hacking in Fernandina Beach area. We purchased a duplex that we live in one side and rent out the other. We still have to pay towards our mortgage so it’s not the best deal in the world but we are in it for the long run. What type of information are you looking for?

Investment Info:

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

Purchase price: $422,000
Cash invested: $10,000

This was our 3rd investment which we decided to house hack. We live in one side of the duplex and we have a tenant living in the other side. We currently do not make a profit from this property but when we move out and start renting both sides (after some upgrades) then we are estimating 300-500 in profit a month.

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

We would like to get to a point by the time I retire from the Navy to have my income supplemented by passive income from our properties.

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

We got this deal off of MLS.

How did you finance this deal?

We got a VA Loan

How did you add value to the deal?

We are going to do some updates inside and out but haven't done them yet

What was the outcome?

still working on this pro

Lessons learned? Challenges?

VA loan option was good for us in this instance but it comes with a lot of fees that are added on your total purchase at the end. Ex. we purchased this home for 440,000 but our loan on this property is 457,912.00. Just keeping that in mind if you do a VA loan.

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

Fergus Reede of the Welch Team, Keller Williams Atlantic Partners Southside

Investment Info:

Single-family residence buy & hold investment in West Plains.

Purchase price: $62,000
Cash invested: $62,000

This was my wife and I's first investment property. We had her mom live in it and decided this was for us.

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

We wanted to get into real estate investing and we already had a tenant lined up.

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

We purchased off of MLS.

How did you finance this deal?

Commercial Loan with Wood & Houston Bank

How did you add value to the deal?

We did not really add value to this deal, we put a great tenant into the property and paid it off as quick as possible.

What was the outcome?

We paid off the property in 5 years and it is just cash flowing now.

Lessons learned? Challenges?

This wan't a home run, it was just an asset in our tool belt to get started. We didn't really have any challenges with this property it was smooth and paid for itself.

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

Pamela Cochran Century 21 Ozark Hills Realty Inc

Investment Info:

Single-family residence buy & hold investment in West Plains.

Purchase price: $329,000
Cash invested: $32,900

We purchased 6 single family homes on 1 street. I would have to say that our biggest help in this purchase was our lender Wood & Houston Bank in West Plains, Mo they are great! This property has some growing pains involved, we had to do a lot of repairs and we inherited some awful tenants so we took a big loss on these properties so far. But we put things in place to turn these properties around and learned how to do evictions. This year will hopefully be a profitable year with about 500.00 a month so far.

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

We were looking for a multi family 2-4 doors.

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

We actually were looking for a duplex but our realtor had a contractor that just built these 6 2Br 1.5Ba homes that are right next to each other in our price range. Our agent was very good and used her resources to find us the best fit for our money, but the contractor just slapped these homes together with builder grade materials that we have now almost remodeled almost all the homes with better materials. We should have had a 3rd party take a look at these homes before purchasing them.

How did you finance this deal?

Commercial Loan with Wood & Houston

How did you add value to the deal?

They were poorly managed properties with builder grade material. So we upgraded the units as tenants moved out.

What was the outcome?

Have not made a profit on these properties yet but hopefully at the end of this year maybe next year we will be profiting $200 a door.

Lessons learned? Challenges?

Have a 3rd party look at the home before you purchase. This could be a home inspector or your family.
Don't take over tenants if you don't have too, we didn't even look at having the previous owner get rid of the tenants.

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

Pamela Cochran of Century 21 Ozark Hills Realty