All Forum Posts by: Brandon Harrison

@Alex G. no doubt the selling costs will need to be accounted for. I by no means think this property is going to make me wealthy, and I didn’t purchase it with the sole intent being an investment. I’m planning to live in this property for 2-3 years and learn some renovation basics while not losing a bunch of money in the process. I’m hoping appreciation will help us here!

@Erin Deann Martin thanks for the recommendation! I just requested to join the group. Thanks again 

@Paul Sedillo that would be fantastic, thank you so much! I’ll send you a direct message. 

@Aaron Smothers great advice! I’ll check out porch.com and certainly keep a close eye throughout the project. I’m reading J Scott’s book on estimated rehab costs and just the detail on writing a detailed Scope of Work has been really insightful. Thanks again!

@Marian Smith wow, thank you so much for your help. Really insightful!

Thanks @Nina Hayden! The estimate is very rough... I just used photos and discussed with an out of state contractor I’ve worked with on my out of state triplex, so very rough!

Our next step is to bring in a few contractors to firm up our estimates. The reason I was comfortable doing this after the option period is that I’ll be using this place as my primary residence for a couple years before selling, so it’s not solely intended to be an investment.

thanks for your insight! 

Hello all,

I'm a newbie investor (I currently own one triplex) living in Austin, TX. I am under contract for a live-in flip in Austin.  It's a relatively "light" flip which is what I was seeking as my first attempt at flipping. My plan is to try to do some of the work myself so I can learn, and then outsource some of the work (knocking down a couple walls) so that I can get some experience managing contractors and ensure the larger projects are done properly. My plan is to hold the property and live in it for 2 years before selling. I'm looking for any advice in managing through this and recommendations of contractors in Austin, TX. 

Here's some more numbers:

I'm purchasing the property for $524k (3bd, 3 bath, 2100 sqft, built in 1985 in the NW Austin area)

Estimated repairs: $30k (open one kitchen wall up, new appliances, new man made countertops painted cabinets, new vinyl flooring throughout, new paint throughout, remove popcorn ceilings.)

ARV: 585k

Thanks all!

@benjamin 

@Benjamin Seibert thank you! Looking forward to learning more from this awesome community!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $132,000
Cash invested: $27,000

Aug 2020, I purchased my first investment property, an early 1900's Triplex in Marion, IA. Purchase price was $132,000. Building consists of two 2bd 1ba units and one studio. I purchased using a 25yr commercial loan. Fully rented at time of purchase. Initial investment was $27,000. I'll need to put new siding/windows on in the next 2 years (current estimate to install is $13,000)

Total Rents= $1795/mo
PITI + Property Management + Utilities + M&R + Vacancy = $1350
Cashflow = $445/mo

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

I've been interested in REI for a few years, listening to podcasts, reading books, talking to mentors and finally decided multi-family, in a strong cashflow market was where I wanted to start.

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

I leveraged my network to find a local property manager, he had a client looking to sell it. We negotiated all new electrical to be put in for each unit ($6,000)

How did you finance this deal?

25 year commercial

How did you add value to the deal?

Adding the seperately metered, updated electrical.

Lessons learned? Challenges?

2 weeks into owning the property, the area was hit with the worst storm in a century. I'm still fighting insurance on some coverage, but this has not deterred me from continuing to seek investment opportunities.