I just finished my first deal, a buy-and-hold in Baltimore City. A mentor sent me the property in November 2014 for consideration. After I inspected it and talked it over with a contractor (also a mentor), the numbers worked. I was all in for the purchace and rehab for about $47K, with owner-financing of $20K. After the rehab I paid a tenant placement company (also a mentor), and they found one in 3 days! The S8 inspection took a while (4 weeks), but the tenant was in by May.
All-in-all out of pocket $48K. The property appraised for $85K, I refi'd out to replenish the funds for my next deal, getting a check back for $38,500, after paying off the owner and closing costs.
The way I see it, I spent $13K ($9,500 + 8 months loan payments) for a rental making $500/month after expenses. Not bad for my first deal. I hope the next one goes just as well.
Thanks BP for educating me enough to jump with both feet. And thank you to my mentors for making it all possible.
Now...ON TO THE NEXT DEAL! Another rental or a flip?
I love this, that's a great story. Looks like you successfully started the BRRR strategy to build a portfolio buy buying, rehabbing, renting, refi, then do it all over again. I bet in 5 years you'll have $3k a month in passive income and you'll feel like you're on top of the world. Great job man
Great success story for a first timer. Good luck on the next one!
thats awesome. I have access to about 50k and want to use the BRRR concept. But i get stuck on refi. Where do you refinance at?
This is my first, so the refi was really easy. I went through a small credit union in Arizona that I still belong to, but just about all banks have said they'd refi since I only have 1 investment property. I'm told that I start having problems refying with the 4th property...so I think I'm good for another 2.
Andrew...I can't tell you how I love these stories. Way to go Rook!
Celebrate and on to the next one!
Great Job again !
CONGRATULATIONS!!!! You give me hope. Good luck on the next one as well.
Excellent!!! So happy for you! Gives me inspiration!!
Sounds like an excellent deal! Congrats and best of luck to you on the next ones!
Sounds like a great, picture perfect deal. Congratulations! Any hiccups, lessons learned or warnings worth sharing with others?
1. Used a reputable wholesaler - great use of my time and money.
2. Should have taken off work and painted it myself (with my boys), as well as refinished the floors. Could have saved $3K. But I really like my contractor, who was also a mentor, so it was money well spent.
3. Should have scheduled the S8 inspector a week or so earlier from finish date and saved some time (read: $$$).