Bought a duplex for $5,000 out of pocket!
I am a new investor just finalizing my second property that I thought went really well. I wanted to post a success story to encourage any other new investors. Starting out it can feel like the strategies the 'big time' investors use are unreachable and I felt that on my first deal. My first deal cost me $23,000 and I thought, 'how am I going to come up with that kind of cash over and over again'. Thanks to biggerpockets and a local mentor...
I bought a duplex in my town from a wholesaler, cost $82,500, and replaced the roof and did some other repairs myself. I used the BRRR method that Brandon Turner talks about, which is essentially he same method a mentor talked me through before that. I used a local bank with portfolio financing. The appraisal came back at 100k post repair, which I was a bit disappointed in. I asked the bank to use an income approach for the appraisal and after some work from my banker they went for it. It then appraised for 111k! After the refinance I was just over $5,000 out of pocket; plus got a line of credit for 6k since there was some room left in the LTV. All said and done I spend much less acquiring this property and actually cashflowed the whole time since I bought it with tenants in it.
I really hope this energizes a new investor in whatever their current goal is. My first a second properties are nearly identical in home value and rent but was able to get the second for much less with a few simple strategies.