First wholesale deal AND first buy and hold...
This last month I had the following 2 success stories - both coming out of a yellow letter campaign in my hometown of Grand Rapids Michigan.
1. Completed a wholesale deal that netted me 5k. Profit on the deal was 9k, but had some help from some members of my local real estate group. Was actually a member of the group that found me a buyer, so don't skip those meetings!
2. Closed on deal that I am going to keep for myself - details:
Single family residence, 4 bed/2bath, 1650 sq. ft. in Grand Rapids Michigan (where I live). Comps show ARV between 90k and 100k in a revitalizing area of the city.
I paid 15k + 8k in back taxes and closing fees, immediate repairs needed of 3k, so all in at 26k (used HELOC money).
I will wait for current renters lease to end (10 months), do cash out refi for about 45k and do full refresh of carpets, paint, repairs, kitchen and pay my HELOC back. This will let me bump rent up about 200/month. current cash on cash return is 22% during this first 10 months.
After refi and refresh, I will have about 50k in equity and none of my money into property, with about 425/month cashflow.
MIght put a small HELOC on at same time of cash out refi (20-25k). Always good to have for the quck down payment cash!
I am have been patiently watching and learning for about 2 years from a lot of people locally here in GR, as well as from all the great posts here on BP. Few months ago decided to pull the trigger and start a mailing campaign and am very happy with results. Used @Jerry Puckett for mailing service and would highly recommend him.
Have several good leads I am still working, so expect a couple more good deals to come out of this campaign.
Wanted to post this to encourage everyone to get educated, get a plan, and then take action!
Mike