106 Days Later First Deal Is MINE!
It took over 2 months past the original closing date but it’s DONE! Talk about a wild ride. I learned a ton through the process, especially about how I should have vetted my lender. Stories for another day.
I’ve been working with student complexes for some years now and recently moved back to Tampa (where I started in 2010) to work directly for an owner on his 570-bed asset. I have been working on my RE education for over a year and if it wasn’t for finding BP I would still be in the dark. I’ll keep this short…
I found the duplex because it was right across the street from a friend’s house and clearly vacant. In fact, about 18 months prior I had lived with that friend at the same house. Shows you how a little education can open your eyes to a gold mine right in front of you. I hand wrote a few letters to the address on the tax info from the county and never heard anything. Around the same time, I moved back into the house with my friend and started seeing this property every day. Literally out my bedroom window. Sure enough, a few weeks after I moved in there started to be some activity at the vacant home. I ended up winning the online auction 3 weeks later.
Closing took forever and I almost lost the deal countless times, near the end I even put my $3,700 EM deposit at risk to get extensions. I’m a gambler, and sometimes you win! Closed the deal on Friday and jumped right to work through the weekend.
Because of my background I'll be rehabbing the property all myself with exception of a few things I hate doing like doors and windows. Aiming to have it rent ready by January. The BP calculator was a great tool, I'll have to update with 100% actuals now that it's closed and see what exactly it'll cashflow. The calculator helped me to determine my minimum rent amount to make sense. This duplex will cash flow $200 per side if rent is $725. Market rent is around $850-1000 depending on level of the rehab. 30% CoC ROI at minimum with huge upside if rehab goes well and rent is at the top of the market. Could end up cash flowing over $400 per side
I’m so excited to get rolling! My mentors have encouraged me to set actual goals, and take the action to get there. The first goal I set a year ago: “Own first deal by December 31, 2016” DONE.