All Forum Posts by: Brian Tome

Matt - I am in North East and Elkton, Maryland.  We are close to Oxford/Nottingham/New London area of Pennsylvania, but I have not invested there to date.

 Exactly!

@Eric James - I was disappointed by that number too. It certainly helps that after the refinance our IRR will be more than 60%.

Plus we will have more equity in the property than we started with and a better cash flow. 

@Heath Thomas Jr - We are getting $1250/mo. for it.  It is very small and that is the top end of the market for that size home in our area, but we specialize in high end renos with granite countertops, stainless steel appliances, and hard wood floors.  We find that we get better rents, better tenants, and our properties stay market ready in the unlikely event we decide to sell one.

@Jared Hottle - That's awesome!  Keep that old girl running!

@Jared Hottle - Thank you for asking.  The name was inspired by my mobile dumpster/ad truck.  Fell in love with it when I saw it for sale on eBay for $2200.  I bought it and used it to haul demo materials away from job sites.  I had an excuse to leave it parked at the property while it was being filled, so hung banners on it for advertising.  Right now, it is at a garage in Baltimore having a 12 valve Cummins Diesel installed.  Will take it from approximately 90 hp to around 500 hp after a the swap and some engine/turbo mods.

We bought this little 2 bedroom 1 bath cottage in Elkton, Maryland for $45K in 2018. It was in need of a complete rehab and we put another $80K into it before renting it to a nice young lady in January 2019. After renovation value was appraised at $147K on January 4, 2019. Our tenant takes excellent care of the property and it has cash flowed around $100/month (on a 15 year note with a 10% reserve) since then.

On the refinance we were not able to get all our money back out. We left about $15K in the deal, which we considered a failure at the time (I was hung up on the idea of getting everything back out). However, cash flowing $100/mo. it still produced an 8% return on investment, so we kept it and tried to do better on the next one.

Fast forward three years and this little cottage just appraised for $210K. After we refinance and put it on a 30 year note, it will cash flow about $300/month (without raising the rent once), put $57K cash in our pocket (to reinvest), and we will still have $53K in equity in a property that we originally invested $15K into - not to mention the tax benefits we gain from depreciation.

This is why I love real estate. It isn't easy or risk free, but it has been a blessing to us.

If you are in the Maryland, Delaware, Pennsylvania area, reach out so we can talk.  These deals are plentiful around the I-95 corridor through the tristate area.

@Jahsad Hollman - Lots of stuff happening in the area you are looking at, and lots of motivated investors around.  Check out the DELREIA Group that meets monthly (I think they are just virtual now) and the ESREI Group on Facebook that meets in person.

I would start by talking with people with different strategies and figure out what direction you want to go.  There are lots of folks doing different things in the ESREI Group (i.e. traditional rentals, student rentals, house-hacking, short term rentals, BRRRRs, etc.).  They post meetings and discussion topics on a monthly basis.

Hey Mario!  How about an update?  I know how awesome this project (and your next) are turning out, but the rest of the folks would probably love to hear it!  You should be on the Rookies Podcast!  Great work, My Friend!

@Ronald Stephenson - Message me or Curtis for details.  We are meeting at his house tomorrow at 1 pm to discuss one members recent flip, as well as their VRBO property in Ocean City, Maryland.