1st Deal After Finding BP: Househack
I'll have to update this once we sell, but unless the market takes off it may be a while. We'd like to keep it at least 2 years for the tax free profit.
I've made it to podcast 179 in a little over a month. I'm actively seeking multifamily properties and have made offers/looked at a few.
We closed on our 4th Single Family a little over a week ago. The house was a foreclosure a a year ago, but a flipper bought it for $185K and restored it to like new condition. Brand new in 2006, the property sold for $227K. It's a 3/2 with 1700 sq ft. It also has another 1700 sq ft in the unfinished basement, which we plan to finish. It should sell for $250K, which is conservative for 3400 sq ft. Here are the numbers:
Purchase Price: $200K (VA loan) My 2nd, and I do still have the first as a rental
VA loan terms: $0 down with 25 year
Seller paid closing costs: $8K ($1K back at closing for earnest money and appraisal, plus $2K paid to a credit card)
Commission: $6K (went to my wife, sellers agent did not receive a commission)
Extras: $1K termite treatment, $1K radon mediation, $500 home warranty for 1 year
The plan is to finish the basement, and pay down the mortgage so just in case something happens we can refinance and rent it out. Being military, we don't know how long we'll be here but it may be another 3 years. We would have liked to buy a duplex or fourplex, but with 4 kids few had 3 BRs and 2 BAs. Since moving here we had been renting on the base. This move was short notice after a tour in Afghanistan.