What properties did you buy in 2020?
Investor · Bella Vista, AR · Member since 2015 · 67 posts · 47 votes
With just a few weeks left in the year, it's likely that I'll end 2020 having made no purchases. I only began looking in earnest in late October, so I don't feel too bad about it, but I'd love to hear about what YOU purchased this year.
What was your goal for the year?
How many purchases did you make? What was the property type and the investment strategy (wholesale, flip, buy and hold, etc)? Where are they located?
Any details you can share about the deals? Purchase price, cash invested, sale price or ARV, rent, financing
Any finally, did any professionals help you with this deal that you would recommend to others? Realtor, lender, title company, contractor, PM, etc
I created this topic in the Fayetteville forum, but I'd love to hear about any deals in Northwest Arkansas: Rogers, Bentonville, Springdale, Centerton, etc
My goal for the year was to acquire my wife and I's first property - which we accomplished back in March!
Buy and hold bought for 160k in Fayetteville with 20% down via conventional financing. Ended up negotiating a few thousand in seller concessions and did some renovations for ~5k. Rents for >$1400 and meets our criteria for a B neighborhood, 3/2 with garage, and not exclusively catered to college students, but could be if needed.
Found it on the MLS, but had to be quick to snap it up. COVID probably worked in our favor to expedite the seller's decision to accept our offer without hearing any others. We plan on continuing with buy and holds until we get 2-3 under our belt after which we will likely switch to more of a BRRRR strategy seeing as most of NWA is teetering on that line of where it doesn't make sense anymore to acquire properties that only need a little love that still cash flow >10%
That's awesome Jennifer!
I recently purchased a Duplex and it was a MLS list. We were lucky in a sense that when it came to market I was able to reach out directly to their agent and placed an offer higher than what they wanted and they just right on accepted it. It was because home needed a bit of work which I didnt mind. It is located in Bentonville and I am trying to convert it to a 3 unit place :). I know deals are hard to find but keep on looking. A lot of good deals come to MLS in my opinion it's just a matter of luck and speed.
My goal for the year was to acquire my wife and I's first property - which we accomplished back in March!
Buy and hold bought for 160k in Fayetteville with 20% down via conventional financing. Ended up negotiating a few thousand in seller concessions and did some renovations for ~5k. Rents for >$1400 and meets our criteria for a B neighborhood, 3/2 with garage, and not exclusively catered to college students, but could be if needed.
Found it on the MLS, but had to be quick to snap it up. COVID probably worked in our favor to expedite the seller's decision to accept our offer without hearing any others. We plan on continuing with buy and holds until we get 2-3 under our belt after which we will likely switch to more of a BRRRR strategy seeing as most of NWA is teetering on that line of where it doesn't make sense anymore to acquire properties that only need a little love that still cash flow >10%
Thanks for sharing @Pasha Maleknia and @Account Closed. It's encouraging to hear that you found deals on MLS. Congrats to you both!
I unfortunately have to say that my goal was to purchase 3 duplexes this year. I have made the money to purchase those, but have not executed on a deal. Several offers.... just haven't gotten any accepted.
I kind of bought a deal. I actually bought and moved into a new house, and rented the one I moved out of, Mar 1. Its funny, my neighbor was selling his home FSBO. I called him and said I'd buy it. He needed a place to rent for a year while he built a new home, so, we just did a house swap. I bought his for under his asking price AND he paid my closing costs, and I gave him a screaming deal on the rent while he built his house. The rental is a 3/2/2 on a huge lot in Cave Springs. When I bought it for myself I put as little down as possible (5% plus closing costs). When I get my next renter in there, it'll CF like $300. Not a "home run" since my PITI is so high, but, its an addition to the portfolio at very little money down, and 3.5% fixed for 30yr.
I kind of bought a deal. I actually bought and moved into a new house, and rented the one I moved out of, Mar 1. Its funny, my neighbor was selling his home FSBO. I called him and said I'd buy it. He needed a place to rent for a year while he built a new home, so, we just did a house swap. I bought his for under his asking price AND he paid my closing costs, and I gave him a screaming deal on the rent while he built his house. The rental is a 3/2/2 on a huge lot in Cave Springs. When I bought it for myself I put as little down as possible (5% plus closing costs). When I get my next renter in there, it'll CF like $300. Not a "home run" since my PITI is so high, but, its an addition to the portfolio at very little money down, and 3.5% fixed for 30yr.
I've heard great things about Cave Springs, that's awesome. Thanks for sharing!
We have sold three sfrs and the mobile home park, Two of them were wholesale, one full market, paid off two, and had one burn. Have been looking for the next one all year, Made a couple of offers but there's crazy money out there being thrown around. I am ready to buy the next one if I can find the one I want. would do a flip or two.
I am ready for 2021. looks like we are going to wholesale a few more , just trying got figure out which ones.
@Jennifer Schelkopf, I bought a pocket listed duplex, and completed my first long distance BRRRR. My goal was to be extremely conservative due to the volatility of the market and only buy great deals. I stuck to that!
@Jennifer Schelkopf
I lived in NWA until May I moved back to TX... still an agent there.
I finally bit them bullet and bought a lot to build a home rent home. This is my first deal so I’m pretty excited... not about the size of the deal just that I’m finally done talking the talk!
Bought my first flip in late feb and just sold last week.
Single family
5 Bed
3 Bath
2,304 sqft
@Jennifer Schelkopf this is a great post and I love seeing what people are doing.
I started the year deployed with the goal of learning the out of state investor process while gone but I wasn't able to get anything under contract while gone.
I made it home in mid October and me and a buddy that I was deployed with have tried to hit the ground running.
We have duplex under contract that should close this week or next week. We got this but driving for dollars and then cold calling. 51K with 20K in rehab needed, currently both units are rented at $650 but once we rehab we will be able to get the rents to $1100 a month. Should work out to be a pretty close to a perfect BRRRR.
We found a SFH and a quad that we put under contract. 3 out of 5 units are rented, it's currently bringing in $1600 a month. We have to get one other unit in the quad that's good to go rented and rehab the other and it will be bringing in $2600 a month when fully tented. The HM lender we were planning to use didn't work so we are having to work through this one, honestly it's a bit stressful.
We found a duplex on Zillow that we got under control as a FSBO, the owner. 25K needs about 20K in rehab. The owner agreed to take 10% down, 6 months interest only payments, with a 6 month balloon where we pay the remaining 22500 when we refinance it. It should bring in $1300 a month.
Not saying this to brag but the opportunities are definitely out there when we put in the work and I can't wait to see you posting about your next purchase!!!
Andrew
My goal was to not buy any properties in 2020. And to build up my cash reserves. I found one off the MLS for 68k and got in a bidding war. Ended up paying 75k cash for it. Came with a tenant who bailed on me three months into the lease. Spent 50k on a rehab and now rents for $1200/mo. It's in a C class hood in the DFW area and now worth 160k.
An off market deal fell in my lap a month later. Paid 130k for it with 20% down on a 15 year conventional loan. Spent 30k on a rehab and now rents for $1625. It’s now worth 230k.
Three single fam houses came under our belt for rentals. Two we were able to add a 4th bedroom for cheap and increase the rent a couple hundred dollars or so to help out the ol' cashflow.
The most recent one just started it's rehab. Two of the 3 of these have been about 40-50k rehabs. The middle one was less expensive, and the tenant has paid well, and no complaints! I believe we have done the BLRRR on the first two and the 3rd one will be as well. (the L in BRRR stands for creating a lien on the property for purchase money which makes it easier to refi than if just used cash!)
Still looking for more deals if you're a wholesaler in the Fort Worth area. We also want more smaller multi-family. (2 to say 50? units)
Best of Luck to all!!
Merry Christmas, Happy New Year!
I think I Bought about 20 single family homes this year so far ..hope to double or triple that amount next year
@Jennifer Schelkopf, I bought a pocket listed duplex, and completed my first long distance BRRRR. My goal was to be extremely conservative due to the volatility of the market and only buy great deals. I stuck to that!
Yeah, I'm nodding along here about being conservative. I'm very numbers focused right now to make sure deals make sense.
Was the duplex located in Northwest Arkansas? And how did you find the deal?
@Jennifer Schelkopf this is a great post and I love seeing what people are doing.
I started the year deployed with the goal of learning the out of state investor process while gone but I wasn't able to get anything under contract while gone.
I made it home in mid October and me and a buddy that I was deployed with have tried to hit the ground running.
We have duplex under contract that should close this week or next week. We got this but driving for dollars and then cold calling. 51K with 20K in rehab needed, currently both units are rented at $650 but once we rehab we will be able to get the rents to $1100 a month. Should work out to be a pretty close to a perfect BRRRR.
We found a SFH and a quad that we put under contract. 3 out of 5 units are rented, it's currently bringing in $1600 a month. We have to get one other unit in the quad that's good to go rented and rehab the other and it will be bringing in $2600 a month when fully tented. The HM lender we were planning to use didn't work so we are having to work through this one, honestly it's a bit stressful.
We found a duplex on Zillow that we got under control as a FSBO, the owner. 25K needs about 20K in rehab. The owner agreed to take 10% down, 6 months interest only payments, with a 6 month balloon where we pay the remaining 22500 when we refinance it. It should bring in $1300 a month.
Not saying this to brag but the opportunities are definitely out there when we put in the work and I can't wait to see you posting about your next purchase!!!
Andrew
I just sent my first direct mail campaign last week, and while I expect it to take a few repeat mailings to get results, it is great to hear about someone else drumming up deals. Makes me want to get out there more!
Where were your properties located?
My goal was to not buy any properties in 2020. And to build up my cash reserves. I found one off the MLS for 68k and got in a bidding war. Ended up paying 75k cash for it. Came with a tenant who bailed on me three months into the lease. Spent 50k on a rehab and now rents for $1200/mo. It's in a C class hood in the DFW area and now worth 160k.
An off market deal fell in my lap a month later. Paid 130k for it with 20% down on a 15 year conventional loan. Spent 30k on a rehab and now rents for $1625. It’s now worth 230k.
It sounds like you have good systems in place if you sourced two deals in a year where you weren't looking to buy. Were you looking anyway for fun? Or do you have a system that brings just the really good deals to your attention? How did you find the off market deal?
@Jennifer Schelkopf That is absolutely awesome to hear! I started to doing mail outs last week also. I'm going with smaller amounts because they are for properties that I am targeting that I haven't been able to skip trace or find the owner's phone number or email. I met someone on here that actually hand writes his letters to keep it more personal so I'm trying that. I've got one call back so far but it hasn't led to a signed contract yet.
I buy in Killeen, Texas and Lawton, Oklahoma because I am familiar with them. I want to eventually branch into Columbus, Ohio but haven't been successful there yet.
How long have you been working on getting into real estate?
Three single fam houses came under our belt for rentals. Two we were able to add a 4th bedroom for cheap and increase the rent a couple hundred dollars or so to help out the ol' cashflow.
The most recent one just started it's rehab. Two of the 3 of these have been about 40-50k rehabs. The middle one was less expensive, and the tenant has paid well, and no complaints! I believe we have done the BLRRR on the first two and the 3rd one will be as well. (the L in BRRR stands for creating a lien on the property for purchase money which makes it easier to refi than if just used cash!)
Still looking for more deals if you're a wholesaler in the Fort Worth area. We also want more smaller multi-family. (2 to say 50? units)
Best of Luck to all!!
Merry Christmas, Happy New Year!
I've never heard of BLRRR or creating a lien on a house when you buy it. I did some googling but didn't find anything. Do you know of any good articles I can read to understand this better? And thanks for sharing!
I think I Bought about 20 single family homes this year so far ..hope to double or triple that amount next year
Wow, you've been busy! What was your strategy? Were these wholesale, long term rentals, flips...
Also, what area did you buy in?
I think I Bought about 20 single family homes this year so far ..hope to double or triple that amount next year
Wow, you've been busy! What was your strategy? Were these wholesale, long term rentals, flips...
Also, what area did you buy in?
Bought them free and clear with cash ,in all fairness some were with private money partners . mostly to lease option and owner finance to folks who can’t get a bank loan , I’m not interested in running rentals as I have 3 kids and work a lot at a full time w2 job . I bought most with my own cash about one every three weeks or so , very few were over 10k though . Usually they are decent livable 2-4 bedroom homes in reasonably safe but depressed areas . My farm area i buy them in I prefer not to disclose . I have no college education , certification, and not qualified to really do anything so I figured I’d just buy up as many as these as I can .I plan to retire and be financially free next year at 44
A duplex in Old Town Longmont, CO. and a Grease Monkey NNN outparcel with high cap and fresh 15 year lease. Sold two multi family properties in West Oakland due to the upcoming tenant protections, mainly TOPA which will pass in the next year. I feel good about the change.....
@Jennifer Schelkopf all do respect why have you not ? There are deals everywhere.. Is this a bit of analysis paralysis ? Simply connect with those doing deals , learn apply why you learn and do it .. Or simply connect with a PM co and allow them to handle all for you
Good Luck
We crushed our goals this year, exceeding my target increase in cashflow of $1500/month gross (Stretch goal $1800/month) by a large amount - we will have increased it about $3200 very soon. We did 2 things that contributed to this: We are completing a 1031-Exchange from a large house in Sedona AZ to 8 properties in the midwest (this investment is half-owned by someone else); we bought, fixed, and rented a house in a 55+ community in Peoria AZ which is cashflowing about $450/mo gross. It was not easy to find a renter for the 55+ house during Covid (no surprise!) so after 1.5 months of trying, we hired a management company who has a much better pool of potential renters (at the cost of the first month's rent).
I am so happy with our overall outcome this year because my wife and my goal is to retire by 1/1/2025, and we're on track to do that. We also just bought a house in Tucson AZ last month, and (despite my usual plan of "shutting things down for December") are driving back and forth overseeing repairs, to probably lease-option it in February next year. So I'm not counting any cashflow from that one until next year. The 1031 Exchange was planned out last year, but the other 2 properties were surprises when they appeared. The 55+ house we found on a REO auction site, we just kept bidding the max price that worked for us, watching other people bid higher, then fall out when they didn't pay up; this happened over and over, until we won the bid. Non-emotional bidding was hard, but it worked! The Tucson house was a complete surprise when a friend told us that their father had passed, and her and her siblings just wanted to sell it and split the money. We calculated what price would work for us as a buy-and-hold or as a flip, and we made the offer, which they accepted. Title made sure all was straight with ownership.
We tend to work on 1 property at a time, paying all-cash by borrowing from HELOCs and 2 personal LOCs also, then re-fi into a mortgage at a low-low interest rate to repay the LOC's. We have a good relationship with the lender, having used them for many properties over the last few years. All this, while still working full-time at our "job" jobs. Can't wait to retire in 4 years, to work on real estate and various service projects full time.
Here's the interesting thing: Covid shut down our vacation rental that was bringing in $12K-14K a year which we usually used to buy a house around end of year (along with other money). BUT, Covid allowed us to get early access to some retirement funds we don't normally have access to, enabling us to buy that 55+ property early! When one door closes, sometimes another opens - you just have to keep your eyes open and stay tuned in to what's happening around you, and let all your family and friends know what you're doing, buying houses that need a lot of work, at great prices. My IRA money has grown so much better under my self-directed control than when it was managed by an investment service company suffering at the whim of the stock market.
The "snowball effect" is real.