My first Deal after 1 week on BiggerPockets
I received a deal from a wholesaler on BiggerPockets (I gave a reference to the wholesaler). This is a single family home located in Wilmington, NC. The deal was $80K for a 2 bed / 2 bath 1140 sqft property. It has renters paying $1,000 / month. The renovation is estimated between $20K - 35K for ARV of $140K. This is a cash purchase for me using my funds from a Solo 401K. The closing will be next week. I will post my BRRRR calculations once we close on the property.
Wow, you move quick.
Is this a flip or buy and hold? If it's a buy and hold, how much will it rent for after rehab?
We have been discussing a property that a member was going to get for purchase + rehab 92k, ARV 130k and rent for 995/mo. Numbers not too different from yours. Consensus was that it was better for a flip. Check it out.
https://www.biggerpockets.com/forums/12/topics/742026-would-you-brrrr-for-78-mo-cash-flow
Awesome keep going!
I am planning on buy and hold at the moment. The place already has tenants that want to stay, and the cash flow is good, so we may wait to rehab it until after the tenants decide to leave. what we are going to do is still fluid at this point. I will know more once it closes and we can meet and talk to the tenants. I would like to do the rehab, but it is working as is. We still need to find a contractor that can do the work as well as provide a quote for the rehab work. I will check out the other post.
@Justin Windham and @Daniella Sanchez
Thank you.
I closed on the Wilmington property on Friday. There were some last minute hiccups, but we were able to get everything straightened out. We allowed the owner to stay one month so he can move, and we have tenants already renting with the owner, so we will not receive any rent until October 1st. Now do we rehab the place or not. We cannot rehab with tenants. I think we will see how the tenants are for a month or two before making that decision. I guess I'm not really doing the BRRRR method. Instead I am doing a buy and hold rental. I have been looking at the non-recourse loan options out there, and the costs of doing these (which is required because of the solo-401k) are not very good. Most of the fixed rate plans I am seeing range from 50% to 60% LTV with an interest of 7% and higher.
@Anthony Smoke
Congratulations! And good luck
@Anthony Smoke noice!
@Anthony Smoke, Man you are a beast! And everyone says you can't buy cash flowing deals in Wilmington, NC. Anthony walks in and buys one in one week. Good stuff!
@Anthony Smoke Nice! Keep me posted. I'm currently in the middle of a rehab in Wilmington as well. Plan is to BRRRR the home. Added sq footage, a BR and bath, as well as a studio apartment on the second floor. Definitely interested in talking to anyone buying in Wilmington NC. Also be safe if this storm hits.
Hey Anthony! Congratulations! Hey, would you refer the Real Estate Attorney you used to close the deal here? I'm looking for another.
Thanks
Sandy
@Anthony Smoke Congrats! As you mentioned, the BRRR strategy may not be ideal in a SOLO 401K. Still a great way to learn and its more fulfilling to drive by your retirement vs. watching the stock market.
Sandy
I use Britt Law in downtown Wilmington. Kara is the contact.
how much will renovating increase the rent?
Thanks to all those that have posted.
@Sandy Sciales - Hello Sandy, the closing attorney was Moore Law, but I don't think I would recommend them. The house had a foreclosure being issued against it, and they missed it. My wife is an expert on mortgages, and she sent back the Statement of Settlement Cost back to them about 7 times before they got it right.
@Bob Anthes - Yes, I will update here any updates. Can you recommend a contractor to help with the rehab?
@Michael P. - It will increase about $400 per month, but after reading the NC Codes, I may need to bring the unit up to the building codes. I know there are some minor rehab that needs to be done.
@Anthony Smoke I do have a contractor but can’t get you his info via this app. I tried putting my email in here it won’t allow that either
Of course, now I have to watch Dorian. It may landfall in Wilmington.
For those of you in Wilmington, good luck with the storm.
@Justin Robert - Hello Robert, are you doing the Solo 401K to invest as well?
@Bob Anthes - Hello Bob, you can send a message to just me (email) only and that will allow you to provide that information.
Originally posted by @Anthony Smoke:@Justin Robert - Hello Robert, are you doing the Solo 401K to invest as well?
I use a SD IRA currently.
@Anthony Smoke Talk about taking action.
You are the real action man! Good on you!
🎉🎉Congratulations 🎉🎉
@Ola Dantis - Thank you Ola. I guess I like to jump in the deep end. :-)
@Anthony Smoke Nice I need some of your luck!!
@Jimmy Francois Come to our women’s group September 25th ft Lauderdale listed on events page.
@Rita Medeiros it’s on my calendar!