All Forum Posts by: William Collins

@Steven Gillmer  I found a lender who will scale to past 10 (portfolio lender)  to work with when pursuing the 1st property I did.  @Shawn Peden The originally invested money 134k + 6k get recycle to the next investment. These are all financed to 70% of ARV and so we have 60k of equity remaining in the house.

This is all about partnering @Shawn Peden, my cousin and I are doing this together. We are using his large HELOC as private money and our formula to use that for cash offer and renovation. We then are able to refinance out 95 to 110% of that money and repeat on the next equation. There is a minimum of 30% equity gain in each of these we do which we leave in that BRRRR house. That let's us have an exit strategy of quick sale- as we can discount the property.

Hope that makes sense.

Would you be owner occupant financing it?  If so, then yes there would be an issue especially if through the same mortgage agency.  If you do it as a commercial investment loan- than no.

@Todd Powell  I am doing none of the work myself other than project managing.  There is competition to be had in some of the market, but if you are patient there are deals to be had.   The main thing is that the apartments I am finding are more extensive.... not cosmetic rehab.

Currently 3 are MLS houses, 1 auction.com property, 1 wholesaler.

This is the 2nd BRRRR strategy for myself and my cousin. The goal is build up $10,000 cashflow/ month per partner. As of the end of this project we are up $500/month per partner. Each house we are doing gets us about 2.5% of the way to the goal. We have 5 total purchased and so by the end of 2016 we will hopefully be up to $1250 per partner/ month. This is since we began in 2015. Shout out to @Michael Noto for helping me with my on market deals. 

Good morning all- sharing 2nd success story.  

Town: Manchester, CT

Property type: Duplex

3 Bedrooms/2 Bathrooms per side

Purchase Price: $65,000

Renovation costs:  Siding and roofing (full resheath), New furnaces, electrical, ripped out plumbing, flooring, kitchen baths. - totalling@ $69,000

End Valuation: $200,000

Refinance: $140,000 out 5 year ARM 20 year amortization

Rent: $1250/unit

Monthly Cash Flow: $507.96

Next up:  Refinance of auction.com property in New Britain.

This was my first auction.com property.  I worked with my realtor @Michael Noto to estimate the ARV. We were able to get inside the property ahead of time, and it is about 4 blocks from my 1st house I bought- so I knew the area.

Rent and hold for at least 5 years. @Mark Proctor

So this story starts in March with an Auction.com offering of a duplex, near to an existing triplex in New Britain Connecticut.  The auction started at $56,000, and I did not bid past $75000.  So the auction ended- reserve not met, and I did not win.  I was contacted within two days of the auction, and was told my offer was accepted.  Long story short- I bought this over under 3 BR/ 1 bath duplex in a nice area of New Britain. 

Spec: 2456 square foot

Purchase price: $75000

Rehab project:  $9200 roof

$16800- paint, flooring, new appliances.

Units: 1100 sq foot 3 bedroom 1 bath with washer/dryer

End lease price estimate from $1000- 1100 per unit.

ARV value: $150,000

Cash out refinance: 70% LTV. Netting $105,000

Total Cash in after refi: $-5,000