I have to say that finding BP and meeting so many motivated people on this forum has really gotten my juices flowing to find and make deals. I closed on 4 units in a single complex in Oakland back in February, and have been doing much of the rehab work on my own. However, between demo and skim coating walls, buying materials, working a W2 job and spending time with the family, I was able to find another deal in my new farm area. The deal is for a triplex consisting of two 2/1's and a stand alone 1/1, in the upper East Oakland area called Reservoir Hill-Meadow Brook. Purchase price is $468k. This is not currently a 1% deal by BP standards, but the building will be handed over empty! For anybody who does not know the Oakland market, an empty building is a HUGE plus and 1% might be attainable after renovations.
What is different about this purchase for me, is that I have stepped out of my comfort zone and partnered up with a fellow BP'er on this deal. I am a lone wolf by nature and have done all of my deals in the past flying solo. I was willing to risk my own money and time, but bringing a partner into the mix changes the level responsibility. However, after reading so many stories of successful partnerships on BP and also meeting somebody who has a skill set that I do not, I decided to step out of my comfort zone and reach out. Thank you @David C. for taking the step forward on this project with me. I am certain that I have much to learn from your experience.
To all of the newbies trolling the various posts and listening to pod casts but who are afraid to make a move, I say to you, step out of your comfort zone and make the bold move into REI that you know you want to make. Search out those people who have knowledge and a willingness to help you grow and become successful. Analyze the deals that you find and learn the skills you need to be confident in making your decisions. Once that is all done, the only thing left to do is have the courage to sign the offer letter.
Good luck to you all!
Congratulations !! Thanks you for sharing your deals and stories on BP. You are doing a great job at finding deals. You truly are an inspiration for me to try to go beyond the area's I am looking and see if we can find some deals.
Are you close to done on your other rehab? I am amazed that you are able to find the time to do the rehab's yourself with a w2 job.
@Radhika M. I tend to stay away from structural issues that require specific expertise. Several years ago I realized that I was wasting time doing things that made me FEEL busy, I was not being productive. Once I changed my attitude toward how and what I do, I realized that there really is more time available in a week.
The renovations have been slow, but they are moving forward. For me, the most important part of this project is that I am learning about the time and cost required to complete certain tasks. As an example, it has taken me 20.25 hours to skim coat all of the walls (very textured walls) in my studio and it took 5 boxes of pre-mixed material to cover all of the walls. I still need to sand and potentially add another coat of material. Keep in mind that this is the first time I have done this, so I would expect an experienced person to be faster and use less material. Now when I go to get bids for the future units, I will know exactly what the contractor is talking about and if their estimates on time and material are completely off base.
Glad to hear the renovations are going well. You are right that knowing how to do something and knowing how to do it will help in future bids.
Do you have tenants in the other units? Or do you get the building empty and work on everything and then rent?
@Radhika M. the 55th ave units had some tenants and some vacant units. I am starting on the vacant units first and then I will move to the others.
Hey @Arlen Chou , thanks for bringing me into this deal, I really appreciate it. Arlen emailed me about this deal on Sat April 18, we checked the property the following day & decided to move forward on it. This will be a fun learning experience for me as well, I was doing flips mostly on my own. The thing I like the most about this deal is the multiple exits strategy, it can be a long term cash flow play, or short term re-position/cash out refi/exchange.
I was researching rent & the 1% is quit possible once we renovate it. Pretty excited what we can do to it! Just need to watch the budget and not over spend :)
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