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THE TROPICAL PARADISE
We landed in Hawaii no knowledge of where to begin with real estate. When we first arrived in Hawaii, we did not have enough cash saved up to make a home purchase. Because we were treading in unfamiliar waters, we decided we would take the time to raise enough capital and make a sensible purchase. We found a condo in Waikiki in need of a serious face lift. For six months, we occupied and remodeled the property to get it up to our standards. We were able to put some sweat equity into the property hand-laying tile or installing new granite counter tops. Materials in Hawaii are expensive and take a minimum of 30 days to be delivered from the mainland, so we had to plan accordingly to have an on-time, on budget finished product. Once we were complete with the rehab, we were able to get the unit a great tenant to live there for two years. In February 2016, we sold the condo yielding a return on our investment of 30% over a 3 year period and prepared to shift our focus back to the mainland.
FLIP
THE FIRST HOUSE
4780 73rd street was our first single family home purchase. We completed the majority of the repairs required before shifting our focus to a new tropical market in Hawaii. During the time that we repaired 73rd street, we conducted thorough aesthetic remodeling, to include new flooring, re-painting, and exterior landscaping. About three years after purchasing 73rd street and keeping our repairs low, we were able to conduct final touches and sell the property for a $100K return on our investment. The neighborhood in La Mesa was great, and we were privileged to be able to breathe some life back into this property.
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THE FIRST PROPERTY
In 2011, we made our first purchase on Gaines street, and we still maintain this property today in San Diego. In our earliest stage, we purchased this property with $9K as a down payment. The property was a short sale two bedroom one bath, which was more than enough for our needs at the time. After six months of waiting to close, we had tenants move in. The property needed some minor repairs since it had been a rental for awhile. Once our tenants moved in, we used our remaining capital to conduct repairs, and worked to reposition the asset to our standards. After these first tenants lived at Gaines street for nearly two years, we purchased our second property, and rented Gaines Street to a wonderful couple with whom we still keep in touch with today, and consider them part of our family. We eventually were able to raise the additional capital necessary to repair the property to our personal standards, and have increased rental income in line with San Diego rates. This property has increased in value to $330K, a $150K increase over our purchase price. We feel lucky to have this property maintain its place in our portfolio.
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FIRST LONG DISTANCE PROPERTY
By spring of 2016, we had raised enough capital to spend on a new property. A friend of the company introduced us to an interesting niche market in Norfolk, VA, where we could get a 10% cash return on our investment. He showed us some of the properties that he had been investing in and explained his process. We were immediately hooked, and started researching this market heavily. We found a short sale property, but it had been vacant for a few years. Once we had an accepted offer, we then set out to find a contractor who could help us conduct repairs, as this would be a long distance rehab. With some work, we knew this place would be great for a small family.
We invested ~$20K into the property and had it rented to a nice couple in two weeks of it being listed. We felt great about fixing up a nonperforming asset after finding it in complete disrepair, and allowing someone to happily call this place their home. After renting the property for six months, we refinanced, and planned on buying our second long distance investment property.
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THE SECOND LONG DISTANCE PROPERTY
By fall 2016, we had refinanced our first investment property, and had some capital to spend on another property. We had been looking at a large number of foreclosures and knew that these properties provided great upside potential, and so began to search for purchasing opportunities on distressed and vacant assets. We came across Chesapeake street. The property needed a lot of work, but we were confident that our Class A contractor team could make it happen. After four weeks of rehab, our lead contractor approached us with a nice family who would be a great fit for the property. The husband was a veteran who had recently finished his military service, and wanted to move his family into the house. We made sure that the family met the required qualifications, and they moved in a couple weeks later. From a distressed foreclosure to a 11% return this asset provided a home for a family and a nice return for the Your Real Capital Team.
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THE DUPLEX
By spring of 2017, we had refinanced our second investment property and sold our first single family. From these transactions, we raised enough capital to purchase another cash flowing property. We wanted to change our strategy towards multi-family properties since these properties could potentially yield a better return on investment. We then found Modoc Ave Apt A/B, a vacant duplex, that was clearly not being utilized to its maximum potential. As soon as the deal closed, the contractor team got to work. Because we were busy rehabbing two units at the same time, the process seemed to take a little longer than previous projects. Once work was complete, both units were rented immediately to some great tenants. Dealing with occasional repairs was expected in the first couple of months of having these units rented. This was the first multi-family property netting a 13% return on our initial investment for the Your Real Capital Team.