Sorry if this post is long and a little disorganized but the last 10 days has been really crazy for me. Plus I'm drinking 12 year Aberlour and smoking an AJ Frenandez New World.
I will start with the military is moving my wife. Because my wife works long hours she's a commander. I had to deal with all the move by myself including buy another house.
My wonderful small bank gave us another 5% down 30 year loan with no PMI. That's 42 closed loans in 30 years.
If you have read my success story you already know that my bank gives me the same loan terms on my crash pads. Thank goodness we are only moving 3 hours away this time. In the last few days they packed our house and loaded and delivered.
My property manager got our house rented for $4800 a month with a September 1 start date. Not quite 1% rule but I'm fine with that. When my wife retires in 6 years we are moving back into this house.
Closed on 2 flops today (thank you HGTV). In the last 2 years I have been buying 3 to 4 flops a month. My agent sells these to other local buy and hold investors usually the same day I close. I make $5k a house after her commission and closing fees.
Now I have never keep any of the flops I have been buying, until now. Why did I keep these two?
I paid $50k for both house's cash. The first house is a 1/1 546 sq ft. 80% complete remolded. I'm putting $25k into finishing it. I will move into it so I can be local to watch over the other project. Then it will become a weekend/Airbnb retreat for when we need to come to town.
The second house is a 3/1 1100 sq ft. I gave the house to a house moving company. They are starting on Thursday on moving it. Why am I doing this because the street this house is on is turning into all commercial.
My agent just completed a similar project and there are currently 5 other houses being moved on my block. She just sold her new commercial building for $690k.
After I closed today I went back to my wonderful little bank and completed a $300k commercial loan for 0% down @ 4.5% interest for 12 months. 43 closed loans in 30 years.
My agents architect only charged me $2k for plans because we are building same building with a change to the front facing.
Better yet my agent has a buyer lined up for the new building already. They lost out on the bid for hers. They already made a verbal bid of $700k. She's going to get a contract signed in the next couple of days.
My project profit is $350k after holding cost, construction and her commission.
For a retired guy I'm worn out! But I'm closing on 2 more flops on Friday. Not keeping them!!!
Sounds like you are having fun!
I hadn't considered marketing to flops. Interesting idea, thanks!