First Deal Success Story!

83 Replies

Hey BP, Im super excited to share with you my first deal! I'll include as may before and after pictures and I can.My brother and I partnered on the deal and got a standard loan with 20% down. This is a long distance rental.

Our first property was a 2 bed 1 bath in southern Oregon. We bought a home "on the other side of the tracks" that most people wont touch, but in talks with the city the area is having a lot of money put into it. Both my brother and I are electricians and have worked in construction a long time so we didn't have any issues with the rehab. When we purchased the property it could haven been rented out "as is", but we are doing the BRRRR strategy and want to refi now that it's complete and buy a few more in the same neighborhood.

I'm a little late on posting this because of the weather, we first were going to paint in July but its was 105F that day. We did all internal rehabs after purchase in July of 2017, but recently finished up paint a few weeks ago.

Numbers:

Cost: 

Asking 115,000 

Purchase Price 110,00

ARV 135,000-145,000

Closing Costs 3,600

Rehab costs > 7,000 ( we did most of the work ourselves)

Mortgage 605

Expenses >400

Rent 1,200

Rehab included:

Painting interior- home interior was originally 7 different colors. Not its only 2.

Bathroom- New toilet and Shower has been painted.

Floors- Hardwood refinished, and kitchen lamnit replaced.

Kitchen/Washroom- All cabinets replaced and handles painted. Wall paper removed, refrigerator installed and washroom sink installed/plumbed.

Front yard- Fence installed, walkway laid out and grass redone.

Backyard- Walkway installed, RV parking now has gravel, sprinkler system installed.

Doors- New doors put on front, rear, and garage entrances. Garage also got a new roll up door.

Exterior- Painted and not UGLY 1950's blue anymore.

The southern Oregon market is wonderful, we had this place rented before we were done rehabbing and the tenants offered to double to deposit if they could move in early. We have been fortunate to have a good property manager as well. We have another 3 properties we are looking at but need to work out the funds. If anyone has questions I'd love to answer. This is my first property so I may have left out some information.


I have a lot more photos of the interior but the keep turning sideways when I post them. If anyone knows how to fix that, ill upload more photos.

-Vince Townsend

Congrats, but I gotta know how you “painted a shower” what does that mean?

Having some construction experience is great and will save you money if you have the time. That’s what I use to do, and still do every now and a again.

Congrats @Vincent Townsend !

I'm from Oregon and know Southern Oregon, I've seen that house and can agree it's "on the other side of the tracks".  

It's all gravy tho, rent is pretty crazy I bought my house in 2013 and it's nice have a ton of equity i'm looking to invest + I have cash to buy. 

I'm looking in SO as well and looking at 3 properties right now, If you need a pair of eyes here or someone to chat with let me know.

I'm new to RE, but looking to get started.

- Brent

@Josh C. I'm going to assume that the OP was referring to painting the upper part of the dry wall as, many showers I've seen, not all, but some, do not heave the tiling or bath tub lining all the way up to the ceiling.

@Josh C. Actually we used a paint kit that is meant for counter tops and shower tubs. It's about $70 a kit and it turns you're old shower tub into a new looking one. You roll it on and it has a sealer.

@Brent M. Yeah there are a lot of home in that market that have sat. We looked at a few that have been on the market 100+ days. I'm not afraid of them. A lot of gentrification is going on in the area. Just between July and now, many of the neighbors I've talked to as well as the tenants have mentioned how much better it's getting. I replied to you PM, let's chat more and maybe we can work on something together!

@Vincent Townsend it's not as bad as near Columbus area so it's fine, there is a kid center near there and some sort of school it's not the roughest.  That area is a bit nicer then some of the other areas.

I'm working with a real estate agent who has 12 doors to see if I can buy in southern oregon too, trying to find something for cash flow right now maybe 1 or 2 cash buys and then have a loan on something just to get some constant cash flow to invest into more.

I'm tired of the stock market it was nice the last 5 years, but now I have the cash just want to move into consistent flow and tax shelter.

Hey @Brent M. I know of a few cash flowing properties that are cash only in the area, Ill send you a PM

Congrats on your first deal.

Congrats on the deal and rehab! Looks very impressive. Also, seems to me that you've found a great neighborhood/area with opportunity. Best of luck. Look forward to hearing more success stories from you! 

Great job!  Wish you much future success!

Congratulations!! Really great to hear such positive stories! Being a newbie investor this gives me a lot of courage.

Congrats Vincent, wish you many more future success. Quick ques! how did you buy this property in LLC or own name and how are you planning on refinancinging under your name or llc name?

Nice...Congratulations on your first rental!

I’m trying to get there.

Congrats! What were the APRs on the mortgage vs. refi? What was the appraised value before and after?

So when you say long distance, you mean you do not live in the area of the rental? How long did yall stay in Oregon to do some of the rehab yourself? And have you gone through the refinancing process yet

Congrats! Looks like you put in some work & best of all you saved money doing it yourself. Good work! How long did you hold the property before you flipped? Or are your tenants still renting? 

Congratulations on your first deal!

Thanks for sharing this success story! Good details and nice pics. I know you will have many more!

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