First BRRRR investment ?

Question

Teledo Ohio

3 bed 1 bath built in 1928 1060 Sq Ft Selling for 31k needs 10-15k in repair. I called a couple property managers. One of them has 3 other houses on the same block as the property. Conservative estimates on rentometer are around $750 per month. The sold comps seem to be on par with the house ARV of around 60k.

So, some of you may cringe at this but Im trying to do this from Cali and will not go to or see the house before I buy it. I will rely of a contractor I have never met and people I have just made connections with. There will obviously be an escrow and I will get an inspection and 3 different contractor bids for repair. There will be a lot of photos and I have people walking me through the house with video. This is not the only money I have so if worst case scenario happens it would not be the end of the world.

To some people it may seem like a dog of an investment but to me I actually feel comfortable with the risk because of the price point. My first out of state deal. If it works out I would like to buy more properties in this area with the team I am developing there. Thanks for your opinions.

Kyle Dwyer · Answer

@Chris Gawlik

I'm actually in process of a deal near identical to this one near College Station TX.

I currently have 6 properties in the area, and this will be my first BRRRR property.  I also dont feel too worried about this one due to price point.

Good luck with your project, I hope it all work out!

Account Closed · Answer

This in five points neighborhood? Good luck.

Daniel Kramer · Answer

@Chris Gawlik I like SFR in good school districts, suburbs. We are currently in the middle of a project, so I am all tied up at the moment.

Dan

Chris Gawlik · Answer

@Daniel Kramer

Whats your niche? That Deal fell through just to let you know. Kind of a combo of not having enough guts to pull the trigger and not being there knowing the comps and neighborhood like I do in my area.

Daniel Kramer · Answer

@Chris Gawlik I know the one you are talking about, I saw some posts from the wholesaler. There are people who do well in that neighborhood, but it's not my niche. It's C/C-, just understand that and make sure you have a rockstar property manager that will be firm and fair with tenants on your behalf.

Dan

Annchen Knodt · Answer

Ah, cool! Reminds me I need to be using Craigslist more. And that's great that you're finding lenders that will lend in that price range. Best of luck as you move toward closing!

Chris Gawlik · Answer

It's on Leybourn Ave do you know the area @Michael P. Would that be the five points area you are referring to. Also I take it from the sarcastic good luck this is not an area you would consider investing in? Five points?

Chris Gawlik · Answer

@Annchen Knodt Thanks!!!

I found it posting an ad on the Real Estate Wanted section of Craigslist, a wholesaler found my ad and contacted me. He will get a commission for finding the deal. He seems to be a very professional wholesaler so far. So its a good contact to start with in the area. I am hoping to find more deals in this and other areas. @Kyle Dwyer I was actually going to check on the College Station TX area next and run some numbers.

Another thing I was worried about was finding a bank to refi a property for under 50k-60k. So far I have found a couple local banks in the Toledo Ohio area that seem willing to lend a small amount of capitol. One bank is called Mortgage Center they would not let me post the address or phone numbers but if anyone is interested and in a similar situation pm me.

Ill give you guys an update on how things are going as we get closer to closing escrow on the deal. Good luck on your deal as well Kyle.

Annchen Knodt · Answer

Congrats on working on your first BRRR @Chris Gawlik!  Hope everything goes according to plan.  I'm curious, how did you find it?  MLS?

First BRRRR investment ?

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