All Forum Posts by: Samuel Koch

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $189,000
Cash invested: $60,000

I purchased a single-family home, owner-occupied, and renovated while I lived there. I am preparing the house to be an Airbnb by the Bay. This is the biggest reno project I have done to date. Very excited to see how things turn out. Going live 2023!

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

IMO, short term rentals are the most profitable option for approved residential real estate.

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

I am Realtor in this area and search for deals 5 days a week.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

I converted the floorplan into a more functional layout and updated everything. I mean EVERYTHING.

What was the outcome?

This is an ongoing project. I am finalizing my STR license and furnishing the property to launch in 2023!

Lessons learned? Challenges?

Renovations take longer and cost more than you plan initially. Being flexible to stay in budget is crucial.

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

Can I recommend myself? I assist investors and V.A. buyers all over the country. I represented myself through this transaction process and have managed everything myself.

@Chris Knebel this is correct. The only thing I would consider is the appraised value is not always what the hone will sell for. We have a lot of properties in the area selling for above the appraised value.

@Kevin Lefeuvre

In my market, Hampton Roads in Virginia, we are just not experiencing effects of the virus with event closures and shortages in our grocery stores. As to the market, lower interest rates are encouraging new buyers to start shopping. Unfortunately, with an extreme shortage of properly priced inventory available, our buyers are able to take advantage of these incredibly low rates.

What does these mean for investors? What I'm seeing, especially in the multi-family, are higher prices. MFR listings are selling in hours, over asking, with few to no contingencies. This may be great for sellers, but limits some high cash flow opportunities.

Just my 2 cents

@Lance Queen Have you considered withdrawing and re-listing to make it a "new" listing in the MLS?

@Gary Boggs Atlantic Bay has the majority of the market share around here when it comes to residential mortgages. I’ve done a lot of work with Ann Arnesen-

https://atlanticbay.com/annarnesen/

I highly recommend her for low rates and great service

@Gary Boggs ahhhh I got it how. I didn’t realize you were wholesaling properties. I work with wholesalers to help them acquire property, but haven’t taken over contracts myself . Sorry for the mixup

@Gary Boggs where are these deals coming from?

@Gary Boggs

Hey Gary 👋🏻Are you looking to put together a syndicate of investors for the area?

@Thomas S. Very interesting thoughts. I view building equity as a savings account in some sense. With appreciation rates pretty steady from 2%-3.5% I find that keeping money in the bank doesn’t compare as far as building interest goes. In my area it is also typically cheaper to make mortgage payments than it is to pay rent in the same property.

Hey @James H.👋 Virginia Beach has a great rental market for all times of the year. Sandbridge is a more luxury and seasonal rental market with most homes being 5+ bedrooms they are available for weekend or entire summer rentals. The oceanfront also has many yearly, seasonal, and weekly rental options. In the passed couple years I have also noticed people buying properties to use strictly for AirBnb.