All Forum Posts by: Andrew G Montoya

I’m Andrew, a realtor turned investor, and I want to share my experience with a specific deal that worked out well. One day, while door knocking in Lake Hiawatha, New Jersey, I found a house where the owner, who was located in Buffalo, New York, was struggling with unpaid taxes and property upkeep. After some back and forth, we agreed on a purchase price of $500,000, with the owner willing to hold the note for me for three years, at 5% interest, with an interest-only payment structure and a balloon payment at the end of the term. The down payment was $27,500. (Borrowed from family)

I partnered with an investor who agreed to fund the renovations and holding costs. Initially, we had a 60/40 profit split, but due to delays with a court judgment and the fact that there were $29,000 in back taxes, we adjusted the split to 42/58. The total renovation cost came to $200,000. I paid solely for smoke cert and smoke detectors and fire extinguisher etc on purchase and sale. ($1,200)

Once the work was completed, I listed the property while renovations were being completed for $950,000. We received an offer within 3 weeks at asking price, which was great. After paying off the $500,000 purchase price, the back taxes, and the renovation costs, I was left with $135,000 in profit after the split. This happened over a 12 month period. It wasn’t an easy deal, but the numbers worked out, and the experience taught me a lot about patience and how relationships and renovation costs can effect a deal.

I had a lot of help doing this and leading me to this deal. Just want to give back.

Thank you @Tim Swierczek

Thank you @Tim Herman, you're right they are soft and i wrote without expenses which I will correct in the future. thank you.

@Corey Hawkinson its in maple grove which is north westish of Minneapolis.

@Satyam Mistry my brother and I are looking to jump in our first investment together and he lives in the area. And we were actually optimistic on the appreciation side but it looks like we're going to have to tighten up the numbers so we can see a more realistic view of what's going to happen.

Thank you guys for the input it is so helpful!

Im sorry this is my second post, geesh time flies.

Hey guys this is my first post on Bigger Pockets!!!

So I need some advice or maybe there is someone that would be interested in the deal. 

Single family town house. 2bed/1bath

House price: $195,000

20% down payment: $45,000 (including closing costs) 

monthly note: $1200 (not including expenses/30 year mortgage @5% and HOA)

average rent in area : $1500 (2bed/1bath)

It looks like a good deal to me but I know that you guys will tell me the right things!

https://www.biggerpockets.com/calculators/shared/988861/a69fb8e7-acb4-4e50-bb44-037eda868f62

Hey, first off I would like to say hello the bigger pockets community! You guys are great.

I have been trying to use the calculator using the brrrr strategy but i  think some things are off with my calculations and I really could use some help because I think some things are off. Attached is a link and I really appreciate any input.

Thanks so much!

https://www.biggerpockets.com/calculators/shared/988861/a69fb8e7-acb4-4e50-bb44-037eda868f62