First BRRRR in Central Arkansas
9 Replies
Joshua Schmidt
Investor from Central Arkansas
posted about 1 month ago
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $150,000
Cash invested: $55,000
Bought this house at an auction with traditional financing. We (my partners and I) put 20% down, which means we financed $120,000.00. We put 30k down and rehab was 25k. We will be all in for about 180k. Our plan was to rent it for $1600 a month and refinance to pull our cash out. A little about the house, it is a 4 bd, 3 bath, 3000 sq ft, built in early 70s and is built in traditional style. After refi we are cash flowing nicely and looking for next deal!
What made you interested in investing in this type of deal?
Bigger Pockets Podcast
How did you find this deal and how did you negotiate it?
Auction
How did you finance this deal?
Traditional Financing
How did you add value to the deal?
Almost a complete gut job....new roof, floors, paint, countertops, expanded master closets, new lighting and fixtures, white washed chimney inside house as well as another brick wall. House turned out beautifully!
What was the outcome?
Bought this house at an auction with traditional financing. We (my partners and I) put 20% down, which means we financed $120,000.00. We put 30k down and rehab was 25k. We will be all in for about 180k. Absolute homerun! Purchase price 150k, remodel around 30kish, ARV 250k, refi 175k. Left 5k in the deal. Mortgage is $1070, rents for $1600.
Lessons learned? Challenges?
I was deployed to Afghanistan when I bought this property. I had a great team in place to helped make this go smoothly!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am an agent and worked with a FANTASTIC lender. She was absolutely a rockstar!
Julio Garcia
Rental Property Investor from Modesto/Stockton/Merced, CA
replied about 1 month ago
Great story. Thank you for your service @Joshua Schmidt
Cher L.
Lender from Avon, CT
replied about 1 month ago
Glad to hear it went smoothly!! having a Rockstar of a lender at your fingertips is (IMO) one of the secrets to success in this business! Your project sounds like a great opportunity for you and your partners to all win. Let's connect! always happy to lend advice!
Alex Clifton
Investor from Benton, AR
replied about 1 month ago
@Joshua Schmidt thank you for your service.
I'm interested to learn how you were able to work financing into an auction purchase. Can you explain the type of loan program you used? Was this home bought at an Auction in AR?
Joshua Schmidt
Investor from Central Arkansas
replied about 1 month ago
@Alex Clifton the auction was online, and it disclosed that financing was available on the property. Type of financing was a traditional conventional loan.
Alex Clifton
Investor from Benton, AR
replied about 1 month ago
@Joshua Schmidt awesome, thank you for the info. I'll make sure I keep an eye out for the financing options on future online listings.
Damon Cluck
Rental Property Investor from Sherwood, AR
replied about 1 month ago
Congratulations. I assume you are talking conventional mortgage, amortized over 30?
Joshua Schmidt
Investor from Central Arkansas
replied about 1 month ago
@Damon Cluck Yes Sir, we started with a conventional, 30 year, then after rehab, we refinanced and pulled our cash out with another 30 year conventional loan. Not the most efficient way to do it, but it worked for us at the time.
Ray Ellen
Realtor from Little Rock, AR
replied about 1 month ago
Thanks for your service and good work!
Joshua Schmidt
Investor from Central Arkansas
replied about 1 month ago
@Ray Ellen thank you and it was an honor to serve this great nation!
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