All Forum Posts by: Cedric Zebaze

Random questions for you to do some critical thinking: 

1. Whose your support system? 

2. DId you use biggerpockets as online university meaning listening to all podcast episode and reading through book educations? 

3.Do you have an emergency fund plus capital savings to create your investments?

4. What is your sales philosophy? 

5. We are all passionate about REI but at times are greatest value as investor is patience..watching seeds grow..but we also need hustlers people with time, is that you?

6.What is the best way you like to learn?(read the quote below) 

 "By three methods we may learn wisdom: 

• First, by reflection, which is noblest; 
• Second, by imitation, which is easiest; 
• Third by experience, which is the bitterest.” 
• “Everything has beauty, but not everyone sees it.” “Wheresoever you go, go with all your heart.”

                                                  - Confucius

Investment Info:

Single-family residence buy & hold investment in Manayunk.

Purchase price: $217,953
Cash invested: $9,396

FHA 203 k limited/ 3.5 % down/ 6.2% interest /house hack
House sales price: $205,000 with 6% sellers assist.
First Appraisal - $260,000 with expected repairs.
Roommates: $1580
Mortgage: $1931
Cashflow: -$341

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

I saw this 4 bed/1 bath with great value add in a B-Class, predominately renters of young professional and young family town in philly.

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

Zillow MLS
Price drop from $215,000 to $205,000
I sent an offer for $205,000 with 6% seller assist(accepted within 1 day) in August.

How did you finance this deal?

FHA 203k Limited loan/ 3.5% down

How did you add value to the deal?

Remodel kitchen and bathroom
Add mudroom, half bath

What was the outcome?

Currently have roommates paying $1580 a month
-----------
11/2018 - Adding a mudroom, separate from rehab, should add $10-15k on ARV total ($270-$275k)
1/24/19 - lowered my insurance by raising my deductible and purchasing a $1 million dollar umbrella policy. Went from $2333 to $1090 premium.

---------------------------------
April 2019
Refi to conventional loan non-owner occupy
Convert roommates to tenants and move out

Lessons learned? Challenges?

1. Have plenty of cash reserves saved up
2. Look to put down more the 3.5% to increase cashflow
3. The process of working with a mortgage lender through closing is stressful, but hang tight once its over, you'll get itch for the next project.
4. Have multiple exit strategies
5.203k loans closing takes 60 days, so this may only work with house on the market for a long time or are $150k+ to be worth it.

Investment Info:

Single-family residence buy & hold investment in Manayunk.

Purchase price: $217,953
Cash invested: $9,396

FHA 203 k limited/ 3.5 % down/ 6.2% interest /house hack
House sales price: $205,000 with 6% sellers assist.
First Appraisal - $260,000 with expected repairs.
Roommates: $1580
Mortgage: $1931
Cashflow: -$341

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

I saw this 4 bed/1 bath with great value add in a B-Class, predominately renters of young professional and young family town in philly.

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

Zillow MLS
Price drop from $215,000 to $205,000
I sent an offer for $205,000 with 6% seller assist(accepted within 1 day) in August.

How did you finance this deal?

FHA 203k Limited loan/ 3.5% down

How did you add value to the deal?

Remodel kitchen and bathroom
Add mudroom, half bath

What was the outcome?

Currently have roommates paying $1580 a month
-----------
11/2018 - Adding a mudroom, separate from rehab, should add $10-15k on ARV total ($270-$275k)
1/24/19 - lowered my insurance by raising my deductible and purchasing a $1 million dollar umbrella policy. Went from $2333 to $1090 premium.

---------------------------------
April 2019
Refi to conventional loan non-owner occupy
Convert roommates to tenants and move out
Appraisal :??
Heloc amount::??
Mortgage Amount:?
Cashflow:??

Lessons learned? Challenges?

1. Have plenty of cash reserves saved up
2. Look to put down more the 3.5% to increase cashflow
3. The process of working with a mortgage lender through closing is stressful, but hang tight once its over, you'll get itch for the next project.
4. Have multiple exit strategies
5.203k loans closing takes 60 days, so this may only work with house on the market for a long time or are $150k+ to be worth it.

Investment Info:

Single-family residence buy & hold investment in Manayunk.

Purchase price: $217,953
Cash invested: $9,396

FHA 203 k limited/ 3.5 % down/ 6.2% interest /house hack
House sales price: $205,000 with 6% sellers assist.
First Appraisal - $260,000 with expected repairs.
Roommates: $1580
Mortgage: $1931
Cashflow: -$341

-----------
11/2018 - Adding a mudroom, separate from rehab, should add $10-15k on ARV
1/24/19 - lowered my insurance by raising my deductible and purchasing a $1 million dollar umbrella policy. Went from $2333 to $1090 premium.

---------------------------------
Refi to conventional loan non-owner occupy date - April 2019
Convert roommates to tenants and move out
Appraisal :??
Heloc amount::??
Mortgage Amount:?
Cashflow:??

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

I saw this 4 bed/1 bath with great value add in a B-Class, predominately renters of young professional and young family town in philly.

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

Zillow MLS
Price drop from $215,000 to $205,000
I sent an offer for $205,000 with 6% seller assist(accepted within 1 day) in August.

How did you finance this deal?

FHA 203k Limited loan/ 3.5% down

How did you add value to the deal?

Remodel kitchen and bathroom
Add mudroom, half bath

What was the outcome?

Currently have roommates paying $1580 a month

Lessons learned? Challenges?

1. Have plenty of cash reserves saved up
2. Look to put down more the 3.5% to increase cashflow
3. The process of working with a mortgage lender through closing is stressful, but hang tight once its over, you'll get itch for the next project.
4. Have multiple exit strategies
5.203k loans closing takes 60 days, so this may only work with house on the market for a long time or are $150k+ to be worth it.

Helllo All

I got pre-approved for a FHA loan and after looking a countless deals I narrowed down to 3 properties.

I'm looking to do 30-40k rehab 

20 minutes from Philly. 

Looking for a 203 k contractor

Goal Month for settlement- October 2018 

Any recommendations?

THANKS!