Best Deal Ever Show: Driving for Some Serious Dollars—An 8-Unit for Only $200K

Best Deal Ever Show: Driving for Some Serious Dollars—An 8-Unit for Only $200K

2 min read
Ken Corsini

Ken Corsini is a seasoned real estate investor and business owner based in Woodstock, Georgia. Ken is best known for his role on HGTV’s hit show “Flip or Flop Atlanta,” and has flipped over 800 houses in Metro Atlanta since 2005.

Experience
With over 15 years of experience in the real estate industry, Ken has expanded his original flipping business into multiple independent real estate businesses, including Red Barn Real Estate, with over 180 agents in Metro Atlanta across four offices; Red Barn Construction, a custom home-building company specializing in modern farmhouses across North Atlanta; Red Barn Renovations, a full-service renovation company; Black Oak Mortgage, a direct lending company based in Woodstock, Georgia; and InvestorSumo, a technology company focusing on CRM and data needs for real estate investors.

Having been involved in thousands of transactions and having owned over 800 houses, multiple commercial and multifamily properties, and more, Ken brings a wealth of knowledge and experience to the BiggerPockets community. He has authored over 100 blogs and currently hosts the “Best Deal Ever Show” on the BiggerPockets YouTube channel. He is also the host of the popular Deal Farm Podcast.

Ken is currently writing a book in conjunction with BiggerPockets called “Profit Like the Pros,” scheduled for release in Fall 2020.

He and his wife also run Roc.Star Kids, a non-profit organization focused on the needs of children and families in the fight against childhood cancer. For more information on this very personal cause, check out their story here.

Press
In addition to HGTV and HGTV Magazine, Ken has been featured on The Today Show, People Magazine, The LA Times, Think Realty Magazine (cover), TV Insider, In Touch Weekly, Life and Style Magazine, The Wrap, The Atlanta Journal Constitution, UGA Today, US Chamber of Commerce, PopSugar, Entertainment Magazine, and a number of local periodicals.

Education
Ken has a Business Degree from the University of Georgia and a Masters Degree in Building Construction from Georgia Tech.

Accreditations
Ken is currently licensed as a general contractor (commercial) in the state of Georgia.

Follow
RedBarnHomes.com
Instagram @kencorsini
Twitter @kencorsini
Facebook

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Meet Henry Washington from Springdale, Arkansas. Henry works full-time doing data analytics but does real estate investing on the side. He has accumulated 40 rentals in the last two years in several areas in Arkansas, including Springdale, Fayetteville, Rogers, and Bentonville. The market is great for rentals due to several large corporations based in the region.

Henry went from single to married in 365 days and realized the single lifestyle of spending every dollar of his paycheck wasn’t going to work anymore. So, he started researching other ways to make passive income and kept coming across the idea of owning rentals.

He thought to himself, “I can be a landlord.”

Henry reached out to a friend—also a Realtor—who lent him the famous book Rich Dad Poor Dad. Henry was instantly hooked.

Since then, Henry has accumulated 40 rental properties over the last 2 years. He sources most of his deals through direct mail or a lead generation website. He is also running a pay-per-click Google ad campaign.

Henry has bought houses as low as $30K, renting for $800/month, to as high as $115K, renting for $1,500/month. The majority of his portfolio is made up of duplexes, and his buy/rent ratios are incredibly strong.

Related: Best Deal Ever Show: The Perfect Multifamily Syndication

This Investor’s Best Deal Ever

Henry and his business partner were driving for dollars one day and came across a property they liked. They met with the seller, viewed the property, and determined it wouldn’t work—but the seller had other properties available. Among those properties were four duplexes, totaling eight units, on two different lots that were grouped together. It sounded like it had potential—so they decided to take a look.

Henry describes the properties as rough! In fact, two of the eight units were inhabitable. One building was down to the studs—with holes in the roof, allowing rain inside. There were bird nests inside light fixtures, drug paraphernalia on the walls, and they even had to use tools to get in some of the units. Of the eight units, only two were occupied. Henry knew this was going to be a massive undertaking!

turnkey-mistakes

Turns out, the seller only wanted enough to pay off his loan. Their initial offer was a lowball of $100K; the seller promptly declined. Henry reconsidered, and they came back with a solid offer of $200K, which was accepted.

They funded the deal with a small regional bank that they’ve used before and was familiar with their quality of work. Henry budgeted a $140K for the renovation, which the bank funded 100%. After paying their 10% down payment of $20K for the purchase price, they were ready to get to work!

To date, they’ve renovated three of the four buildings and are just starting to do the fourth.

Related: Best Deal Ever Show: $4.7M Profit on Very First Multifamily Investment

 The Numbers

They currently have six units averaging $725 per month. They plan to finish the renovation, then refinance, keeping the cash flow coming in. They plan to work with the same bank to do new construction on the other lot.

  • Purchase: $200K
  • Rehab: $140K
  • Current Cash Flow: $4,350/month

Henry’s Advice to Other Investors

Anytime you have a meeting with an investor, ask if they have something they don’t want, Henry recommends.

And put together good spec sheets for contractors prior to them coming out to inspect properties and provide estimates, so they have an idea of what to expect in terms of the scope of work.

What was your best deal ever or the best deal you’ve ever heard about?

Share in the comment section below.