5th property under contract year ONE
That is pretty amazing. Congrats. I bought my 1st in September. Rehab is taking longer than expected due to me not hiring a project manager and not being able to pull the trigger like I should have. I understand this now so it has been a learning experience. I really want to get this one rented and start on the next one.
How are you handling the finances of 5 properties?
@Troy Welch I used traditional financing on the first 2 as they were deals off the MLS. The last three I used hard money.
@Douglas Rice thanks for sharing your journey with us. It's good to see you're experiencing such great success early on. Can you tell us what your greatest mistake or difficulty has been so far?
@Nathan Gesner the biggest difficulty has been estimating rehab costs. I have underestimated every project. It all worked out OK so far, but I need to get better at this aspect.
@Douglas Rice have you looked at the BiggerPockets book store? They have a book specifically on the subject of estimating rehab costs.
Another option: take a couple contractors to lunch or pay them for an hour of time and have them educate you on how to estimate rehab costs.
Third option: check out this web site that gives estimated costs for certain projects based on your region. It's probably not accurate enough to budget with but can give you a rough idea of cost and estimated return on investment.
@Nathan Gesner thanks so much. I have the rehab book, also have been taking my contractors with me as much as possible. I’ll check out the website.
@Amul Sutaria I will be about $1100 between the 5 doors when I get a renter in the current rehabbed single family. $500 on the triplex, $400 on one SFR and $200 on the other.