Full Time Employee/ multiple BRRRR side hustle 28.75% to goal

Full Time Employee/ multiple BRRRR side hustle 28.75% to goal

William CollinsPro Member
Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes

Here is my accountability update for my goals:  achieving $20,000 cash flow per month (10,000 for me, 10,000 for my cousin).  All of these are in Connecticut using @Michael Noto to help on acquisition.   We do use PM so we can focus on the projects. 

So far:

1) Triplex in New Britain- BRRRR complete and fully operational acquired spring 2015

                 2625 Rent Roll 100,000 acquisition 50,000 renovation, 140,000 refinance out 190,000 valuation

                 Cash flow total for this above everything else $600 or 3% of the goal.

2) Duplex in Manchester- BRRRR complete acquired fall 2015

                 2500 Rent Roll 60,000 acquisition 60,000 renovation, 140,000 refinanced out 190,000 valuation.

                 Cash flow above expenses $600 or 3% of the goal.

3) Duplex in New Britain- Auction.com buy at the refinance stage. Acquired Spring of 2016

                 2475 rent roll 75,000 acquisition 20,000 renovation, looking to refinanced out  120,000 for a 160,000 valuation

                 Cash flow above expenses of $500 or 2.75% of the goal.

4) Duplex in New Britain- bad foundation, MLS deal acquired summer of 2016

                2600 rent roll 85,000 acquisition 35,000 renovation, refinanced out 115,000 for a 220,000 valuation ( high)

                Cash flow above expenses of $600 or 3% of the goal.

5). Duplex in Manchester- acquired from wholesaler @Jerryll Noorden for $77000 summer of 2016

               2250 rent roll 77,000 acquisition 40,000 renovation, refinance out 126,000 for a 168,000 valuation

              Cash flow above expenses of $400 to 2% of the goal.

Mid rennovation:

6) Duplex in Manchester- acquired from MLS fall of 2016 estimated July completion

              2800 rent roll estimated 75,000 acquisition. 70,000 renovation valuation estimate $210,000 looking for 75% refi

              Cash flow above expenses of $800 or 4% of the goal

7) Duplex in Manchester- acquired from online auction in Winter of 2016 estimated July completion

              2800 rent roll estimated 83,000 acquisition.  70,000 renovation valuation estimate of $210,000 looking for 75% refi

              Cash flow above expenses of $800 or 4% of the goal

8) Triplex in Berlin- acquired from auction winter of 2016

             4200 rent roll estimated 125,000 acquisition. 85,000 renovation,  valuation estimate of $300,000 looking for 75% refi

             Cash Flow above expense of $1000 or 5% of goal

In acquisition:

9) Duplex in Bristol- acquiring from MLS end of May 2017

             2200 rent roll estimated 90,000 acquisition, 25,000 renovation, valuation estimate of $160,000 looking for 75% refit

             Cash flow above expense of $400 or 2% of the goal

We also have 1flip about to sell in June, and 1 flip buy to close in June.

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Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
9y

@William Collins, I notice that sometimes you get to refi out MORE than your outlay. Kudos!

Given that you could've, you didn't for number 4 ie. (Only) $115k out on a $220k valuation?

But certainly, you're on the right track. Don't forget, every month that goes by will (slowly) increase the percentage of your goal achieved any way, purely because of the loan pay down effect! Cheers!

See this reply in the discussion

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  • Real Estate Agent · Central New Jersey · Member since 2017 · 135 posts · 37 votes
    9y
    William Collins Very nicely done! What would you say has been the most challenging part of the BRRRR strategy for you?
  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    9y

    So where are you at total net cash flow per month now?

  • William CollinsPro Member
    OP
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    9y

    @Dan Turkel The most challenging thing was building the network of contractors. I now can tackle 2 jobs being open at the same time while I am working my day gig.

    @Brian Garrett  If we needed to take the cash out my cousin and I could each take out $1350/month right now and account for vacancy, repairs, capex.  Once the summer passes- closer to 2k, but we also will have a large capex fund on hand at that point.... so we could take more but right now we plow it all back in for the next acquisitions.

  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    9y

    @William Collins That's great keep grinding and growing!

  • Rental Property Investor · Springfield, VA · Member since 2013 · 56 posts · 16 votes
    9y

    So you use the equity from the first property to invest in the next one? So you renovate all properties and then keep them? Basically you wouldn't be able to buy a houe I am about trying to learn as much as I can.

  • William CollinsPro Member
    OP
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    9y

    So the formulas this. Buy house at 70% of After Repair Value- renovation costs. So in my case it is usually 200,000 ARV. The math is this 200,000 * .7 =140000. My purchase plus renovation must be less than 140000, which is what the refinance will give me in the end. I then get to keep the cash flooring asset for essentially 0 cash in and a 30% equity gain.

  • San Diego, CA · Member since 2017 · 38 posts · 11 votes
    9y

    @William Collins I've seen that formula before, but once I run the numbers it seems so low nobody would take those offers. Do people actually take your offer for 70% arv - reno cost?

  • William CollinsPro Member
    OP
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    9y

    Yes @Brandon Vannier they do take it but on specific properties.  I focus on properties which have been on the market extended times or are unable to finance the initial buy. Houses where the copper is ripped out/ electrical are ideal.  To  be honest in my area I don't trust those systems to be anywhere near being the level I want in my end product anyways. 

  • San Diego, CA · Member since 2017 · 38 posts · 11 votes
    9y

    @William Collins That's really smart.. how long are then on the market when u buy usually.

  • Investor · American Fork, UT · Member since 2014 · 28 posts · 4 votes
    9y

    Love how you have laser focus and give a % of your goal.  It's motivating me. Getting so hard to find these properties in my market now but we're still trying.  Thanks for sharing!

  • Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    9y

    @William Collins, I notice that sometimes you get to refi out MORE than your outlay. Kudos!

    Given that you could've, you didn't for number 4 ie. (Only) $115k out on a $220k valuation?

    But certainly, you're on the right track. Don't forget, every month that goes by will (slowly) increase the percentage of your goal achieved any way, purely because of the loan pay down effect! Cheers!

  • Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    9y

    DUDE!!!!   this is wicked great.

    For those that do not know Bill. I had a property under contract, I told him what I wanted for the contract, he passed by the property, took 30 minutes to check it out... he came out of the house and shook my hand and said deal. He didnt try to swindle me, no "but this is bad, this is crap".. no  nothing.

    Honest buyer no BS!

    You need this dude on your list!!

  • Franklin, WI · Member since 2015 · 56 posts · 27 votes
    9y

    @William Collins Good work! Looks like you're well on your way to your goal. I like the variety of ways you found your properties so far. Do you mind if I ask how you funded your first few BRRRR's?

  • William CollinsPro Member
    OP
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    9y

    I am fortunate that my cousin has a very large HELOC, which is the kick start. That loans on 401ks and now hard money has been the path.

  • Marlton, NJ · Member since 2017 · 129 posts · 16 votes
    9y

    Excellent, very informative to those who still need a broad view and understanding on following certain formulas. 

  • Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
    9y
    Great work. You are crushing through your goals. Are you tapping normal banks for the Refis? Are they under both you and your cousin? Where I'm going with this is will you eventually run into a road block on the refis when you reach a certain number of them? I imagine a good relationship with a portfolio lender would keep the deals flowing, you might just see smaller LTVs and shorter amortizations. Best of luck.
  • William CollinsPro Member
    OP
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    9y

    @William C. I am tapping 1 portfolio lender and Finance of America as we are refinancing in a corporation name.  This will give us pause at $4,000,0000 of total loans, but not at a specific number.  Portfolio is 4.5% 5 year arm 20 year amortization,  Finance of America (B2R) we are getting high 6% 30 year amortization.

  • Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
    9y

    @William Collins thats awesome man congrats! I am looking to use the same strategy as well. I know that reaching that financing limit can be an issue for a lot of BRRRR investors. Have you thought about what you're going to do once you reach that $4,000,000 in total loans? I know you probably have more to worry about getting their first, but just curious of your thought process.

  • Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
    9y

    Also, seems like you're getting really good rent to value ratios. Are you renting to college students by any chance? I know CCSU is right by New Britian.

  • Springfield, MO · Member since 2017 · 158 posts · 114 votes
    9y

    @William Collins this is awesome! Keep up the good work. Hope to join your ranks soon.

  • William CollinsPro Member
    OP
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    9y

    @Bill Goodland  I am not quite close enough for many students- though I do have 3 in one rental.  Once I reach 4,000,000  my goal #1 will be met.  I will also have 3 breweries online by that time so my thoughts are- drink a beer or three. 

    @Jessie Nunley the longest part of the journey is the first step.

  • Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    9y

    Let's get this guy on a podcast...well done!

  • William CollinsPro Member
    OP
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    9y

    Thanks @Mike Dymski for the support.

  • Investor · Los Angeles, CA · Member since 2017 · 95 posts · 52 votes
    9y

    @William Collins Thanks for sharing!  Couple questions if you don't mind:

    1) Do you broker your own deals to save on commissions as well?

    2) Do you feel that you've improved a lot from your first deal to your latest deal?  If so, what are the items you feel have improved the most?  (ie rennovation budget, time to complete rehab, procuring tenants)

    Thanks and I wish you continued success!

  • Professional · Anaheim, CA · Member since 2017 · 1k+ posts · 686 votes
    9y

    @William Collins

    your previous posts said " look for properties that have been on market for extended periods of time" Are these on MLS, wholesalers, FSBO, or private listings? How do you find these 70% ARV?

    $200k for ARV, gives only $140k for purchase and repairs. Are these hard to find?

    I'm looking at Las Vegas, and hard to find duplux, triplex, or quad that fits your business model.

    Terry Lao

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