All Forum Posts by: Brad Noe

@Account Closed thanks for the advice but I just went ahead and transferred it out of my name into the LLC. Wasn't too painful.

@Phil Van Dyke

With an ultimate goal of building passive income, if I just suddenly acquired $50,000 I would use it as a down payment for a couple of SFR's that I can renovate, build in some equity, rent for cashflow, then refinance in 6-12 months and do it all over again (what @Brandon Turner calls the BRRRR strategy).

This is exactly the strategy I already employ. I most recently put $15k down on a foreclosure in Jeffersonville, IN (just across the river from Louisville) that I acquired for $45k purchase price, then put another $20k in to renovate. The estimate ARV (after-repair value) is $120k, and I have tenants moving in today paying $1050/mo. which should provide about $350/mo. in cashflow after all expenses. I will refinance later this year and roll the funds into the next project.

Do you have any investing or construction experience/knowledge? 

@Tim Puffer that was my assumption as well, just wanted to make sure. Thank you for the advice.

@Lynn McGeein Thanks for the response. I have a mortgage on the property and have approval in writing from the lender to quitclaim the deed to the LLC.

This may be a dumb question but, if we are doing a Quitclaim Deed to transfer ownership of a property over to an LLC, should we also change the insurance policy from our personal names to the LLC name?

@Jerome Depner can you offer an update on which font worked the best for your letters?

Thanks @Mark Gallagher! 

Yes - we have some (hopefully) great tenants moving in tomorrow paying $1050/month! That makes for roughly $350/mo. cashflow!

Roof ended up at around $5,000.

We ended up just replacing the carpet over the hardwood instead of refinishing. @Todd Bauer suggested doing this to preserve the hardwood for when we eventually sell the property.

@Madeline P. thank you! It's amazing how it all comes together. And we learned SO much on this first project that you could never learn from reading a book (and trust me I've read just about every real estate book there is lol).

@Adam Roy I'll have to defer to my wife @Katie Noe for that one, but I believe that it is Sherwin Williams "Manchester Tan".

@David Heath @William R. Thanks guys! Let's keep in touch. 

@Jeff Kehl Thanks man. But trust me we are not taking a break to bask in anything - we are moving onto the next one and yes we are planning to refinance and rollover the funds toward the next project(s). My wife @Katie Noe obtained her real estate license a few months ago and we are going full force into this as a team.

@David Idi I would consider this a "class B" neighborhood for southern Indiana.

@Tyler Jahnke I'm having issues with posting the images directly to the forum, but here is a link to view them: https://www.dropbox.com/sh/ggp1l9gz6huaakw/AADIBX-cEPdXC2AFiBxcxltZa?dl=0

@Michael Ferry @Rajesh T. @Todd Bauer @William R. @Jeff Kehl @Account Closed

UPDATE: We finished the rehab a couple of weeks ago and just yesterday collected the Deposit to Hold from our soon-to-be tenants! Here are the final numbers:

Time to complete: 2 months

Purchase price: $45k ($30k loan w/ $15k down payment)

Final rehab cost: $22k ($20k loan; $2k came out of pocket)

Total mortgage loan: $50k

Total out-of-pocket: $17k + $3k closing & holding costs = $20k

(All-in for $70k)

Estimated ARV: $120k ($70k in equity!)

Rental price: $1,050/mo.

Estimated cash flow after all expenses: $350/mo.

Cash-On-Cash Return: $4,200 annual cash flow / $20,000 out-of-pocket = 21%

Big thanks to everyone copied on here for your interest in my first project here and to many of you for helping me out and giving some great advice. I could not have done it without you! Now it's onto the next one. Have a merry Christmas and happy new year everyone!

Hey @Ryan Gettelfinger, I too am an investor from Louisville drawn to Jeffersonville and the surrounding areas for the redevelopment and growth that is occurring. I purchased a foreclosure over in the Oak Park subdivision of Jeffersonville recently and will be done with renovations this week. I'm hoping to be "all-in" with the purchase + rehab for about $70k and rent the place out for about $1,100. So, not too shabby. What areas and properties are you interested in?