All Forum Posts by: Garett Collins

This was entertaining to read through! :) 

#LoudNoises

Investment Info:

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

Purchase price: $122,000
Cash invested: $17,000

The duplex sale price was $25,000 and needed almost $100,000 in rehabbing costs. It was a full gut rehab with everything new except exterior walls. It was a crazy first home purchase, project, and investment but now it is cash flowing about $800/mo and we love it!

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

At the time we needed a place to live and figured having someone else paying our mortgage would be a good idea. At the time we were unaware that we were house hacking and now that we have moved we found a property manager and it's cash flowing!

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

Found it on Zillow after looking for a long time and then connected with an agent.

How did you finance this deal?

Used cash and a family member gave us a hard money loan to finance the rehab until we refinanced.

How did you add value to the deal?

New everything haha!

What was the outcome?

CASH FLOWING RENTAL!

Lessons learned? Challenges?

Oh my goodness. We were only 20 & 21 (my wife and I) and we learned about needing permits, dealing with mold, dealing with grand fathered in code items vs bringing things to code, dealing with the city (It was black listed), learned how to demo, how to paint, how to install moulding and laminate/vinyl flooring planks, and I am sure I am forgetting more. This was a 6 month loooong process and we ran into a bunch of issues but in the end it was worth it.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We worked with an agent that sells all of the bank owned homes in Southern Maine. I forget his name unfortunately.

Wow thank you for the advice! I am not sure when I will be in TN but who knows what could happen by the time 2020 starts! I'll PM you! @Katherine Hite

Wow awesome @Alexander Yates Thank you! We are considering a few different places and haven't committed to any area specifically yet. If we hit there then I will follow up with you for sure!

I'm not sure if this is the right area for this but I've been doing the math on mobile homes in retirement communities and it's blowing my mind. Is there good reasons not to do this?

I have found a bunch of mobile homes ranging from 10K-30K that do need some updating but I can't imagine more than 10-15K!

So let's take the worst scenario of 15K on top of 30K purchase on a 2bd 2ba that market rents are $750-1000/mo. Let's call it $800.

$800 * 12 = $9600

$9600 * .6 (Vacancies, repairs, and etc) = $5760

$5760 / $45000 = 12.8% ROI

Am I doing something wrong here?

Make sure you cover ALL bases in your lease and house addendum. Research every single law in your state and make sure to make your lease as strict as possible! I'd take a look at the lease forms on this website as well as ask your property manager or any friend or family member to show you theirs so you can compare. Make sure they initial every single line and sign each copy. This just covers your bases! It is not to be mean in fact a good tenant will respect a strict lease.

I also agree to serve an eviction notice as soon as you are legally allowed to. Depending on your state it can take a long time to get them out and it can get ugly. 

If you are going to allow pets I would recommend a pet deposit just in case they chew your countertop, scratch through a wall or window, and etc.

Respect your tenants rights and know your rights. 

I currently live in Sacramento CA and have been looking at potential BRRRRs across the country and I don't know why I've never considered just across the mountains. 

Is anyone successfully BRRRRing, Wholesaling, Flipping, and etc in north west Nevada?

If so what are some areas you think would be a good place to start?

I currently have a cash flowing duplex in Maine and would love to get #2 whether it's a SFR or MF!

I also have been very interested in investing in Florida all the way from California. I've been reading a lot from David Greene and I want to start building a core team out there. Any advice on how to find a good agent or wholesaler? That seems like the best first step for me. I currently own a duplex in Maine with awesome cash flow and am hungry to get more! I am open to SFR but am more interested in Multi-Families, although not if it is below C-Class neighborhood.

@Harrison Smith Thanks brother! I lived near Biddeford for about 4 years. It's a beautiful state when you're not shoveling ha! 

I'll reach out if we look up in the north east again! 

This is my first post on BP so please forgive any newbie questions, comments, and etc.

My wife I unknowingly did a house hacking BRRRR on a duplex in Southern Maine when I lived there at the time. I found it on Zillow of all places for $25,000 which needed $100,000 of work. It was in terrible shape. Funny story on that actually the first day we showed to start demo'ing the place a county official showed up to put caution tape on the house to make sure no one entered the building since it was at risk of falling a part. We definitely learned a lot. We initially thought it would be about $50,000 to rehab and we spent double. Thankfully today it is worth about $180-190K and it started cash flowing pretty quickly. Currently, in the non winter months (we pay for heating), we receive about $1,000 month and during the winter months about $300-500. It is a 3/1 ($1350/mo) and 2/1 ($1050/mo) duplex where we lived rent free for two years!

Now we are about 4 years down the road in California and we have really wanted to obtain more rentals. I would like to use the BRRRR long distance method but aren't really sure where to start. We are yearning to move out of Cali and into a more business friendly state in the next two years so I have been thinking about states that we are considering which are 1) Florida, 2) Texas, 3) Tennessee, and 4) South Carolina. We have saved up about $10K cash for rentals and also I am considering either using a HELOC or just doing a simple REFI on our Maine apartment and am hoping to get at least another 30K from that.

So with around 40K to get started, again, with we really want to start moving forward in this journey. I have a goal of getting at least 2 more rentals by the time 2019 is over and then double down on it next year before we leave for our new home. 

We are basically starting from scratch with a cash flowing apartment to our name and decent paying jobs, although cost of living here is pretty high. 

My biggest question would be how do I find good properties to BRRRR especially at long distance? I would think off market properties would be the best but that sounds really challenging although I am up to the challenge if I can learn it.

Let me know! THANKS!