All Forum Posts by: Clark Kirkpatrick

This is really interesting, I've never heard of someone using a lease option for a tenant living in the property - rather than living in it yourself. And it still was cashflowing during that time! Awesome!

I decided to move to a nearby market that had more deals than where I originally lived. Moved into a duplex to house hack a year ago, learned a ton on the first deal (which took about 2 months from beginning the search to closing) and then rehabbed it myself (which took 7 months and way more money than anticipated). In 2019 I set a goal to acquire 4 more units, which I'm on track to exceed.

Changing that market to a favorable one was a game-changer for me.

That sounds like a killer deal! Good job!

While adhering to the law, I'd pick your favorite/most qualified and that's that. Have a legitimate business reason ready to back up your decision. 

Unless you value your time very highly and it's worth it to you to just select the first qualified person, that should probably work as well.

The rehab is more difficult, costly and time-consuming than you expected. Have more cash reserves than you think you'll need, or at least a job that pays reasonably well and a willingness to DIY stuff.

Learn to screen tenants properly. Bad ones will sink your ship in a hurry.

I agree that the $15k rehabs for a BRRRR are not easy to find. I believe they exist, but I haven't come across one for myself (and I have been looking!!). Seller financing would be a great option for you, if you can find a willing seller and you have some cash for closing costs and a down payment, if the seller wants one.

I think you should consider hard money as a last option, but really try to get your network going and find some private money. You could get a deal financed 100% that way, with better terms than hard money.

There's some tradeoff here between the speed at which you can grow and your risk tolerance, so given that you don't like risk, that will slow you down. So you just have to come up with a balance that is suitable for you between those conflicting desires.

I'd use the cash from your house because that money is free! Hard money is pricey. Keep in mind that your first deal is always risky because you don't know what you don't know, so understand going in that you might not get as much back as you'd anticipated. But that first deal is invaluable, and it'll set you on the path to success.

Light gray with white trim and white ceilings. Makes the trim pop, isn't just boring white and isn't a love-hate sort of color scheme.

Investment Info:

Single-family residence private money loan investment.

Purchase price: $46,000
Cash invested: $90,000

Single family home with 4 beds, 2 baths and a 3-car garage in the heart of Pottstown. Purchased as a short sale. At the time of purchase, we estimate it needs $30,000 of rehab work so that we can make it pretty and rent it out for a projected $400/month cashflow.

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

Found as a short sale on the MLS, and it took several months to close because of the short sale process.

How did you finance this deal?

Private money loan, then a cash-out refi

How did you add value to the deal?

Medium-sized rehab, including floor coverings, mold remediation, junk removal, water in the basement, and some kitchen and bathroom work.

@Dan Perlman Your situation sounds a lot like my own.

Do let me know what you thought, and let me know if I can do anything else for you. I'm happy to help!