Brandon's 100 day challenge??? I did it in 81........

Real Estate Deal Analysis & Advice
9yFollow

Brandon's 100 day challenge??? I did it in 81........

Coco Zuniga
Investor · Herriman, UT · Member since 2017 · 79 posts · 60 votes

March of this year I had a conversation with my Uncle that consisted of terms like "1030 exchange" and "gross rent" and other terms I had no clue what they meant.  He sent me a few podcasts from this website I had never heard of...Bigger Pockets???  I listened.  Then I listened some more.  Then the bug bit me and I couldn't itch fast enough.  I watched @Brandon Turner's webinar on April 6 and he challenged the viewers to buy their 1st/next property within the next 100 days.  I closed on my duplex on day 81.  

Here are the numbers......

Purchase price $300 k

Conventional mortgage 10% down with no PMI

vacancy 3% (vacancy is almost non-existent in this BYU town) $69

repairs 5% (I bought it fully remodeled) $115

cap ex 8% $184

other expenses $50 (internet I provide for my tenants)

gross monthly income $2300 ($1400 upstairs for a 3/1 and $900 down for a 2/1)

cash flow $274.39

cash on cash ROI 8.23%

The thing I did not add in is PM, because I will manage it myself.  But, from here on out every deal I analyze will have 9% PM included.  

"Some people want it to happen.  Some wish it would happen.  Others make it happen."  Michael Jordan

Coco 

12Reply
46 views

Most Popular Reply

David Song
Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
9y
Let me give you an example: In 2009, I bought a duplex in San Mateo, ca for 425k. 1600 sf or so. Similar to what you bought, but in much worse condition. Total rent is $3300 for both units, after some simple remodel. 20% down, about $340 k loan. 30 year fixed. Monthly mortgage, property tax, insurance about 2400. Monthly cash flow about -900. I was a newbie and did not even know what capex was. The house is very old, built in 1919. Foundation is settled. Windows are bad. Paint are peeling. We spent about 15 k to do some basic repairs. At that time, I did not know much about REI nor construction. A lot of the work was done poorly by contractors. However, now, the rent is $6500. Property values at 1.2 -1.3m. Now, I learned so much from my own mistakes. The key is location. Minor mistakes as a newbie can be overcome later with experience. The only two most important thing: 1: timing 2: location The house is of no concern to me now. Whether it is good or bad, I do not care. Because all those deficiencies are easy to fix. The only thing that can not be fixed is timing and location. If there is a fire that burns it down, I can rebuild a brand new for $300 k, and the new house would be worth around 2 m. From the picture of your duplex, it is in a nice neighborhood. That is what counts.
2Reply
See this reply in the discussion

27 Replies

Jump to latestLatest
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free