The 13-Bedroom Rental Property That Makes $25K Per MONTH

TL;DR

Dayna Hicks earns $25K monthly from a creatively financed 13-bedroom property.

Transcript

this is real estate rookie episode 355 my name is Ashley K and I'm here with my co-host tonyj Robinson and welcome to the real estate Ricky podcast where every week twice a week we're bring you the inspiration motivation and stories you need to hear to Kickstart your investing journey and today we've got another amazing guest Dana Hicks and I love ... Read More

Key Insights

• Dayna Hicks leveraged creative financing to purchase a 13-bedroom property, securing a $180,000 discount through negotiation.
• Her real estate journey began with inspiration from 'Rich Dad Poor Dad' and BiggerPockets, leading her to invest in multifamily properties.
• Dayna's motivation for investing includes providing affordable housing for foster youth and creating a legacy for her children.
• Her first real estate purchase was a Triplex, financed through a HELOC from her primary residence.
• Dayna emphasizes the importance of surrounding oneself with like-minded individuals and leveraging online communities for support.
• She managed her first rehab project by learning on the go, highlighting the importance of frequent site visits and detailed scopes of work.
• Dayna's transitional housing project is designed to support young adults who have aged out of foster care, providing both housing and services.
• Despite high interest rates, Dayna secured favorable financing terms by working with brokers to find the best loan products for her properties.

Questions & Answers

Q: How did Dayna Hicks get started in real estate investing?

Dayna Hicks began her real estate investing journey after being inspired by the book 'Rich Dad Poor Dad' and discovering BiggerPockets. She realized that real estate could provide her with something to pass on to her children and offer affordable housing options for foster youth. Her first investment was a Triplex, which she financed using a HELOC from her primary residence.

Q: What is the significance of Dayna's 13-bedroom property?

Dayna's 13-bedroom property is significant because it serves as a transitional house for young adults aging out of foster care. It offers them not only housing but also support services to help them get back on their feet. This project aligns with Dayna's mission to provide affordable housing and support for the less fortunate, and it generates $25,000 in monthly income.

Q: How did Dayna negotiate a $180,000 discount on her property?

Dayna negotiated a $180,000 discount on her property by leveraging her real estate knowledge, understanding the local market, and identifying the property's shortcomings. She presented a compelling case to the seller, highlighting the necessary repairs and the property's overvaluation compared to the neighborhood. Her determination and negotiation skills resulted in a significant price reduction.

Q: What challenges did Dayna face with her first rehab project?

Dayna faced several challenges during her first rehab project, including managing contractors and staying within budget. She learned the importance of having a detailed scope of work and conducting frequent site visits to ensure progress and quality. Despite these challenges, Dayna successfully completed the project by hiring a reliable contractor and closely monitoring the work.

Q: How does Dayna's transitional housing project support young adults?

Dayna's transitional housing project supports young adults by providing them with affordable housing and essential services as they transition out of foster care. The program aims to equip them with the skills and resources needed to become self-sufficient. This project reflects Dayna's commitment to giving back to the community and supporting vulnerable populations.

Q: What financing strategies did Dayna use for her real estate investments?

Dayna used several financing strategies for her real estate investments, including a HELOC from her primary residence, hard money loans, and traditional mortgages. She worked with brokers to find the best loan products for her properties, ensuring favorable terms even in a high-interest-rate environment. Her creative financing approach allowed her to expand her portfolio quickly.

Q: Why is community support important in real estate investing, according to Dayna?

According to Dayna, community support is crucial in real estate investing because it provides investors with a network of like-minded individuals who can offer advice, share experiences, and provide encouragement. Being part of communities like BiggerPockets helped Dayna gain confidence, access valuable resources, and learn from others' successes and challenges.

Q: What advice does Dayna have for rookie investors starting in multifamily properties?

Dayna advises rookie investors to start by educating themselves through books, online resources, and community engagement. She emphasizes the importance of surrounding oneself with experienced investors and being open to learning from their insights. Additionally, Dayna suggests being prepared to take calculated risks and to leverage creative financing options to acquire multifamily properties.

Summary & Key Takeaways

• Dayna Hicks, a multifamily investor and foster parent, earns $25,000 monthly from a 13-bedroom transitional house. She negotiated a $180,000 discount and used creative financing to secure the property. Her real estate journey was inspired by 'Rich Dad Poor Dad' and BiggerPockets, aiming to provide affordable housing and a legacy for her children.

• Starting with a Triplex financed through a HELOC, Dayna quickly expanded her portfolio. She emphasizes the importance of community support and learning from others in the real estate field. Her approach includes managing rehab projects with detailed planning and frequent oversight, ensuring successful property upgrades.

• Dayna's latest project focuses on transitional housing for young adults aging out of foster care, offering both accommodation and support services. By working with brokers, she secured favorable financing despite high interest rates, showcasing the potential of real estate investment even in challenging market conditions.