All Forum Posts by: Tom Fisher

Ask away!

Investment Info:

Single-family residence buy & hold investment in Charlottesville.

Purchase price: $105,000
Cash invested: $15,000
Sale price: $165,000

Property is a two-story 1979 townhome close to the center of Charlottesville. After a cash purchase for $105k and upgrades of approximately $20K, we will rent then finance at 75% of $165k ($124K)
Projected cash flow around $350/month after all expenses including management.

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

Property is within our radius and we are focused on SF and duplex properties

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

Deal was acquired on Auction.com

How did you finance this deal?

Cash

How did you add value to the deal?

Mostly cleaning up a foreclosure in good condition. New flooring, paint, fixture updates, windows

What was the outcome?

We will refinance after renting, take out the maximum equity and add it to our investment portfolio

Lessons learned? Challenges?

Learned an interesting part of bidding on an online auction. In the early phase, the bid increment will increase by factors of $5k or more. If you put in your max price then and are high bidder, you are more likely to pay a few thousand more than if you put in your max bid towards the end, when they decrease the bid increment to $1 or $1.5K

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

Not on this deal.

Hi Ryan,   I've had great help from Tucker Griffen Barnes.  All of my closings with them have been impeccable,  and I've gotten great advice, advocacy and help.  Bill Tucker is a seasoned RE investor and Mary Ann Barnes is a big help in asset protection, contracts and legal entities. 

Investment Info:

Single-family residence buy & hold investment in Charlottesville.

Purchase price: $255,000
Cash invested: $19,000

Charming bungalow / ranch with lots of storage. Location, location, location! Fry Springs neighborhood so close to UVA, Medical Center, Fontain Research Park, and quick access to I-64. Also close to new 5th Street shopping complex.

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

Am specializing in 1-4 unit residences near the University, that need work or have room for improvements. This one has a full unfinished basement in an up-and-coming safe neighborhood. The numbers worked on this one

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

FSBO, Went directly to the seller without a realtor. That discount helped a lot.

How did you finance this deal?

Conventional.

How did you add value to the deal?

New Windows, cleaning, paint.

What was the outcome?

Rental from $1500 a month to $2000

Lessons learned? Challenges?

Went back and forth from intention to Air BnB it to a straight rental. Just signed a two year lease.

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

TGB for settlement and legal. NFM lending. Great service on this 5th deal.

Hi all,  there is a RE investor Meetup group at the Chatlottesville Omni every 2nd Tuesday.  

Andrew, Sure.   Good luck with the Air BnB model in Albemarle County, though.   I understand there are now some pretty severe restrictions on doing it outside the Charlottesville city limits

We're doing well in Ch-ville by buying fixer-uppers with cosmetic re-habs needed and Air BnB'ing them.  It works if you can find someone to manage and host for 10% and you have a nice mid-scale property.

We (ENVIRON) own 5 rental properties within walking distance of the University of Virginia in Charlottesville. There is, we've found, a diversity in the kind of renters within the "student" category. We have successfully bought rundown properties off the MLS, upgraded them (tile bathrooms, newer fixtures & appliances, new windows, extra insulation, programmable thermostats, etc.) and targeted tech, medical and grad students. It turns out that there are also tech start ups in the area and those employees turn up their noses at the dirt lawns, and old paint and appliances in the typical student rental. They want to be close in to the city / university core, and will pay more. (However, location is important. Stay clear of Frat row.) Also, in one we run a dedicated Air BnB upstairs and a rental / caretaker down and are doing very well with 95% filled up weekends from April to December (and super host status). All that said, be sure to arrange your leases so they end in May or June and start advertising on Zillow in January or February, when next Fall's students are lining up their housing.

Blane Stewart and NFM Lending.    No question.  He's also a RI and a great mentor full of ideas.

I've worked 3 of my last deals with him as broker in Charlottesville.

We bought a property with the intention of just Air BnB'g it.   It's making alot more than as a rental, but takes more work too and has to be in a good location. We had to buy the property retail in order to get the right location.

Most important:  It has to be clean and neat when guests arrive. Next, keep in touch with guests but not all over them.  Check in on "how's it going" and do thorough preparation and contact with each party.

If you do a destination whole-house Air BnB, try to fit as many people as possible, and have two bathrooms. Our "BrookSide" has 4 bedrooms but only one bath, which limits our fees. Charge for extra people over 5 or so.

Get professional photos of the house, rooms, etc.  Its not expensive and helps a lot in standing out.

I agree with Peter, start cheap with a great bargain and get half a dozen five star reviews.  This will buy your learning curve.  Then do it by comps.

We live in Charlottesville,  which is an upscale destination for wine tours, UVA alumni reunions, weddings, and tourists visiting the local history.   

Make it "special" with character, but not personal.   We use nice fixtures, antique furniture and Persian rugs everywhere.   Really comfortable bedding is a must.  No photos of Aunt Matilda and our kids.  

We have ours professionally cleaned after each visit and charge for the service ( $80)