Passive investor to purchasing 3 properties this month
After watching my brother Austin Fruechting, and putting a few dollars with him in 3 packages as a passive investor, my wife and I are starting the race to financial freedom through RE. You can listen to his story here: https://www.biggerpockets.com/.... It's inspiring. It inspired us!
Late this summer I started to seriously look into the different avenues this might take for us, and daydream about the different outcomes, something flipped inside. I decided, "I'm going for it." At that time I thought I'd take 6 months to research our area, network, and get some systems and team in place. 2 months later I had the bug and decided I couldn't wait. We closed on 3 properties through a wholesaler in the last 2 weeks and started rehab on 2 of them. We hope to BRRRR them and start 3 more in April.
The properties
SFH: PP $35k, rehab $18k, ARV ~$85k
SFH: PP $21k, rehab $19k, ARV ~$80k
Duplex: PP $35k, rehab $27k, ARV ~$85-90k
If we can get the appraisals to come in where we need (*here's hoping!), we'll BRRRR out with a local bank via commercial loan, 5/1 at 4.5%.
The learning curve
The first SFH I now realize I'm likely $5k over what I should have paid. I would have tried to negotiate that down. We need contractors! I'd like to keep 2 crews busy for the next 5-7 years straight.
Raising some bigger picture questions
Some big questions are gelling in my mind. I'm wondering if I need to start DMM and maybe wholesaling myself (since we need to find 100+ doors over the next several years it could save a lot of money). Maybe adding flips to generate more cash and scale up. Both of those strategies would help us transition to full time RE ventures, helping us move toward financial freedom and beyond.
For now we'll keep moving forward hard with what we know (largely from my bro)--SFH's, BRRRR strategy.
Here's the 2 SFH's (pictured below)
