All Forum Posts by: Gorden Lopes

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $70,000
Cash invested: $36,000

My second BRRRR deal, bought it for 70K, rehabbed it in 36K and got it rented for $1200 and then it got appraised for 150K. Getting all my cash out!

Had posted a BP post while I was in the process of rehab, read it as well to get more context.
https://www.biggerpockets.com/forums/597/topics/810809-my-current-brrrr-deal-in-progress-and-need-contractor-references?highlight_post=4839430&page=1#p4839430

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

There was enough meat on the bone that even in worst case I would be NOT loosing money on this and I will learn a ton about rehab as this involved a lot of rehab!

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

Found this through a wholesaler, I started by offering 64K and after almost a 1.5 months of negotiation we decided on 70K. This house also had a bonus room which helped with renting it out quicker.

How did you finance this deal?

I paid all cash and in the process of doing a cash out refi.

How did you add value to the deal?

This was a huge rehab and luckily there were not too many surprises! Did a complete gut rehab of the master bathroom down to the replacement of the subfloor. Did a kitchen rehab by repainting the cabinets, adding new countertop, new backsplash and new appliances, new fixtures. Repainted the entire house. Added new floor to the basement living area. Added siding to the one extra room. The siding was rotted as can be seen in the pics. Many small items like garage motor replacement, Landscaping.

What was the outcome?

I was able to get it rented out even before the rehab was finished and the tenant moved in the next day after the rehab was completed. Currently doing cash out refi and it got appraised for 150K so hoping to get all my cash out and this should cash flow 250 conservatively.

Lessons learned? Challenges?

1. Always budget for 10% more than your rehab estimate. I budgeted 30K best case and 45K worst case and had based my offer on the worst case number. I initially got really excited that I might be able to finish the rehab within 25K (as mentioned in my prev. post) but there were couple of surprises that let to the budget going to 35K.
2. Removing junk is not that difficult/expensive. This house had a LOT of junk in it but after it was removed the house looked in great shape.

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

Message me and I can refer you to my lender/agent and PM company.

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $70,000
Cash invested: $36,000

My second BRRRR deal, bought it for 70K, rehabbed it in 36K and got it rented for $1200 and then it got appraised for 150K. Getting all my cash out!

Had posted a BP post while I was in the process of rehab, read it as well to get more context.
https://www.biggerpockets.com/forums/597/topics/810809-my-current-brrrr-deal-in-progress-and-need-contractor-references?highlight_post=4839430&page=1#p4839430

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

There was enough meat on the bone that even in worst case I would be NOT loosing money on this and I will learn a ton about rehab as this involved a lot of rehab!

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

Found this through a wholesaler, I started by offering 64K and after almost a 1.5 months of negotiation we decided on 70K. This house also had a bonus room which helped with renting it out quicker.

How did you finance this deal?

I paid all cash and in the process of doing a cash out refi.

How did you add value to the deal?

This was a huge rehab and luckily there were not too many surprises!
* Did a complete gut rehab of the master bathroom down to the replacement of the subfloor,
* Did a kitchen rehab by repainting the cabinets, adding new countertop, new backsplash and new appliances, new fixtures,
* Repainted the entire house
* Added new floor to the basement living area.
* Added siding to the one extra room. The siding was rotted as can be seen in the pics.
* Many small items like garage motor.
* Landscape

What was the outcome?

I was able to get it rented out even before the rehab was finished and the tenant moved in the next day after the rehab was completed. Currently doing cash out refi and it got appraised for 150K so hoping to get all my cash out and this should cash flow 250 conservatively.

Lessons learned? Challenges?

1. Always budget for 10% more than your rehab estimate. I budgeted 30K best case and 45K worst case and had based my offer on the worst case number. I initially got really excited that I might be able to finish the rehab within 25K (as mentioned in my prev. post) but there were couple of surprises that let to the budget going to 35K.
2. Removing junk is not that difficult/expensive. This house had a LOT of junk in it but after it was removed the house looked in great shape.

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

Message me and I can refer you to my lender/agent and PM company.

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $70,000
Cash invested: $36,000

My second BRRRR deal, bought it for 70K, rehabbed it in 36K and got it rented for $1200 and then it got appraised for 150K. Getting all my cash out!
Had posted a BP post while I was in the process of rehab, read it as well to get more context.
https://www.biggerpockets.com/forums/597/topics/810809-my-current-brrrr-deal-in-progress-and-need-contractor-references?highlight_post=4839430&page=1#p4839430

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

There was enough meat on the bone that even in worst case I would be NOT loosing money on this and I will learn a ton about rehab as this involved a lot of rehab!

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

Found this through a wholesaler, I started by offering 64K and after almost a 1.5 months of negotiation we decided on 70K. This house also had a bonus room which helped with renting it out quicker.

How did you finance this deal?

I paid all cash and in the process of doing a cash out refi.

How did you add value to the deal?

Did a complete gut rehab of the master bathroom down to the replacement of the subfloor, did a kitchen rehab by repainting the cabinets, adding new countertop, new backslpash and new appliances, new fixtures, repainted the entire house, added new floor to the basement living area.

What was the outcome?

I was able to get it rented out even before the rehab was finished and the tenant moved in the next day after the rehab was completed. Currently doing cash out refi and it got appraised for 150K so hoping to get all my cash out and this should cash flow 250 conservatively.

Lessons learned? Challenges?

1. Always budget for 10% more than your rehab estimate. I budgeted 30K best case and 45K worst case and had based my offer on the worst case number. I initially got really excited that I might be able to finish the rehab within 25K (as mentioned in my prev. post) but there were couple of surprises that let to the budget going to 35K.
2. Removing junk is not that difficult/expensive. This house had a LOT of junk in it but after it was removed the house looked in great shape.

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

Message me and I can refer you to my lender/agent and PM company.

@Joshua Dorkin

Congratulations! Madison is a great location and John really know the area quite well! I am sure the rents will go up a lot in the coming years. 

So your total out of pocket was 155K or was it 155k + 15k (rehab). 15K rehab for floor and paint or was there something more, as it seems a little high for just floor and paint.

Hey @Jordan Woolf, @Account Closed!

Thank you for providing your insights! I am a OOS investor investing in Huntsville and have over the past 2-3 years acquired few rentals. I totally agree with you guys that Huntsville did not see much impact from Covid infact its getting even more heated up! I got all my rents from all rentals (not a single missed rents) plus I was able to actually increase rents on couple of properties that had undermarket rents (just 50$ per month)!

I am always on the look out for investor friendly agents to work with. I would love to talk to you guys more!

Great job @Eryka Santoyo!

Thats a great strategy for 35811 zip. The numbers look amazing! Cashflow of almost 700$ is simply amazing!

All the best for your future projects and keep sharing your numbers!

@Samuel Garrett

Those are really awesome numbers!! Congrats on that amazing work!

I would love to get a reference on your core four! Can you please DM me.

Congrats @Joseph Breamer and @Eryka!

The numbers and the rehab pics both look amazing!

Great going! 

@Marcus B Hsu

If you need references on good PM companies in Huntsville then please let me know.

I have few rental properties in Huntsville and got a pm who works with out of state investors.

Hi @Marcus B Hsu!

Thanks for sharing your experience! And congrats on this deal! Madison schools are one of the best in the area. Thats what I love about huntsville is that its a perfect blend of cash flow and appreciation.

I am pretty confident that you will get good appreciation in the coming years!

The rehab looks really good specially the kitchen! I would love to also see the other 2 properties!