All Forum Posts by: Robin Carriger

This is awesome!  I'm really looking forward to it!  :-)

No problem, Justin... Welcome to the game!  :-)

Expenses caused by pets and other residents can be minimized by inspecting every unit regularly and charging tenants for repairs as soon as damage is identified before the tenant even has any plans to move out.  We just got a painful/sobering reminder when long-term tenants moved out of two single-family rentals, and, because we hadn't inspected either house in a while, considerable damage had been done.  We paid almost $30K for each "make-ready!"  Needless to say, this is something that cannot & will not continue.  :-(

Investment Info:

Single-family residence wholesale investment.

Purchase price: $20,000
Cash invested: $115
Sale price: $25,000

Contributors:
Cindy Carriger

This house was owned by an elderly couple who had rented it to an "interesting" family that included one guy on anti-depressants, a Rottweiler, a pit bull, snakes, an iguana, and what looked like asbestos shingles on the exterior walls. I'm glad all we did was wholesale it to a rehabber. We made $4885.00 after it was all said & done.

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

Building cash via wholesaling for down payments on rental property purchases

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

Motivated seller called us from a postcard that was sent to a targeted mailing list

How did you finance this deal?

No financing was required for this one.

How did you add value to the deal?

We didn't add value to the house, but my wife, Cindy, was vital to development of rapport with the sellers.

What was the outcome?

We made a net wholesale fee of $4885.00.

Lessons learned? Challenges?

Potentially violent/deadly animals aren't enough to scare away people like us who were on a mission to build wealth in Real Estate.

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

Not on this one

Investment Info:

Single-family residence buy & hold investment in Watauga.

Purchase price: $63,000
Cash invested: $7,000

Contributors:
Cindy Carriger

This house rented for $875.00/mo back then. Now it's worth more than twice that and cash flows $700.00+ per month after ALL expenses. Persistence pays off! :-)

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

Long-term cash flow & Financial independence

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

Motivated seller called from a postcard that was part of a targeted mailing

How did you finance this deal?

30-yr fixed loan with a private lender

How did you add value to the deal?

It's been too many years to remember the full details of the rehab, but it cost several thousand dollars.

What was the outcome?

It's appreciated significantly, and we're still renting it.

Lessons learned? Challenges?

Lots of lessons learned over the years...
- Don't do the rehab yourself. Hire honest, experienced contractors, and let them do what they do best.
- Personal referrals are best, but you still have to vet them (easier said than done).
- Home warranty policies are a mixed bag.

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

Not on this one

Just a reminder... STRs are one of the most management intensive types of investment in our business, so... as you grow your portfolio, make sure you have a plan to automate the management as much as possible.  Self-managing might work for a while, but it will get old.

I forgot to mention that this house has almost quadrupled in value since we bought it.  :-)

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $58,000
Cash invested: $7,000

Contributors:
Cindy Carriger

This was our second rental purchase. We learned multiple lessons, including catching a rogue contractor trying to pull a fast one. We'd hired him to buy & install the carpet. He was busted by someone else we'd hired. We'd paid for new carpet AND a new, thick pad, but he tried to just leave the existing pad in place. Needless to say, that was the last job he did for us .

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

Building cash flow toward financial independence in retirement has always been our focus.

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

We put a "We Buy Houses" sign on the corner of Norwood Dr & Hwy-183. The owner was having job troubles, so he called. We stayed in touch with him over a few months, and he finally decided he needed to sell.

How did you finance this deal?

We purchased this via a private money loan, and we ultimately paid it off by making consistent extra principal payments.

How did you add value to the deal?

New paint, flooring, bathroom cabinet mirror, landscaping, vent-a-hood, garage door opener, etc.

What was the outcome?

We still own & rent it. Rents have gone from $850.00/mo to $1495.00/mo.

Lessons learned? Challenges?

When it comes to hiring contractors for rehabbing a house, the cheapest guy never is. :-)

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

Not on this one... However, I do recommend developing relationships with private money lenders. They are pure gold, so always be sure to treat them that way.

I've been an active Real Estate Investor for 19 years now, so I remember the days before iBuyers like Opendoor entered the market.  This reply isn't an argument, because I appreciate the other perspectives that have been shared here.  This is, however, a firsthand, personal observation.

Over the last several years, on EVERY potential deal that's come to us via our direct marketing efforts, we've competed directly with at least one iBuyer.  And... from conversations with those motivated sellers, the iBuyer's offer has been slightly below, at or slightly above retail.  So... although my personal experience doesn't come with comprehensive statistical data, it's led me, and virtually every other investor I know in DFW, to believe that iBuyers are playing much more than a 2% buying role... at least in our corner of the world.  With that said, there are, of course, other ways to find profitable deals, and we've done well with those.

Thanks to everyone for your thoughtful replies.  If you have more articles, videos, etc., please continue to share them here.  :-)

@Nicholas L. Now that I've done a little more searching, it's actually worse than I thought. In Tarrant County, TX (Fort Worth, etc.) where I live, which has been the primary target area for our investing efforts over the years, the National Association of Realtors' (NAR) research says 52% of homes were bought by institutional investors in 2021.  In Dallas County, it's 43%.