First Fix and Flip in Georgia state

[Laurence Obi]

Investment Info:

Single-family residence fix & flip investment in Loganville.

Purchase price: $187,500
Cash invested: $25,000

This rehab got completed on the 3rd week of October 2019 and we will be cash flowing it and refying into our next deal.
We're doing an overloaded version of the BRRRR strategy using short term rentals.
That's our play.

What made you interested in investing in this type of deal?

Well... I'm a serial investor and I met my business partner who totally matched my energy and we decided to dive in blind and luckily found a good deal.

How did you find this deal and how did you negotiate it?

This was a foreclosure.

How did you finance this deal?

Private money lender

How did you add value to the deal?

Home had no kitchen. Was in bad shape. So a $25k flip put it in good shape.

What was the outcome?

Ready for rental and refy.

Lessons learned? Challenges?

Lessons: Never believe the prognosis on ARVs on auction sites. Do your due diligence yourself.

Challenges: Finding contractors for the first time in my life. It was a huge headache.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Nope!

[Laurence Obi]

Originally posted by @Alex Bekeza:

@Laurence Obi Thanks for sharing.  Looks awesome. 

What kind of terms did you get with the private money purchase in terms of Rate, Costs, and LTV?

Where do you plan to take the refi? If not utilizing conventional, most lenders want to see 6 mos - 2 years worth of STR operating history in order to use that income to qualify the loan if not relying on Tax Returns/DTI. So I'm curious to see your plan because I'm always looking at different Short Term Rental financing options.

 Hi Alex,

like I said, we are newbies at this and it's literally our first flip. We got a decent APR of 9.5% from our lenders. LTV for both purchase and rehab of 85% so we were just 15% down.

Now the cool thing about this deal is our lender is also a portfolio lender so they're willing to do the refi for us. We haven't discussed rates yet but we'll be comparing with what we can get in the open market as well. Between us both, I and my partner have a cummulative rental experience of 9 years. Not STRs regular rentals. We still will cash flow this for 6 months before we can refi.