All Forum Posts by: Gorden Lopes

@John Minnix thanks!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $160,000
Cash invested: $160,000

A straight forward off market turnkey property in Toney, AL. Bought for all cash for 160K from a wholesaler with and ARV of around 190k and got it rented for 1500.

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

My PM lived very close to the area and was super confident of renting this one out quickly plus the house was in super great condition.

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

Off market, through a wholesaler. The wholesaler got it for 157k and he assigned it to me for a fee of 3k.

How did you finance this deal?

I paid all cash.

How did you add value to the deal?

Not much, the only value add was to able to close quickly with cash.

What was the outcome?

I have got it rented for 1500 per month and I am confident that this will appraise for 190K at the very least. Will cash out refi after the seasoning period is over.

Hey @Zach Grigg!

Wish you all the best in your RE journey and you are at the right place and almost at the right time, Huntsville has a lot of growth ahead in the coming years and I think its a perfect mix of cash flow and appreciation.

I am not a local investor but been investing in Hsv for a few years now and can refer you to a good local lender or PM. There are a many wholesalers who are active and once you do your research on the areas you want to invest you can try to score some off market turnkeyish property from these wholesalers!

Cheers!

Hey @Tanner Morrill!

Based on my limited large MF experience, I think the current cap rate for huntsville is around 7%-7.5%

I have a reference for a local commercial lender as well.

@Michael S. Lol! I am hopeful though! Whenever that happens, I am visiting Hsv every month!

Congratulations @Mora Clark! On your success!

If you have another bigger and better investment (like a large MF deal etc) and are low on cash then cashing out makes sense.
Huntsville has at least 5 years of solid growth ahead so I would definitely recommend to keep holdin 'em!

See if you can make your rental 3/2, that would also help get a higher rent as well. Oh yeah and you should definitely fire your PM! ;) I have couple of  good referrals as well.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $200,000
Cash invested: $3,000

A straight forward easy long distance BRRRR in a great area of Huntsville. Bought this for 200K, spent 4K in paint, small fixes and landscaping and got it appraised for 250K and got it rented for 1695!

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

This was a no brainer. I knew the zip code and the area very well.

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

I had build a relationship with an out of state wholesaler in a previous off market deal that fell off and had built trust and friendship. When the wholesaler found another deal in huntsville, he just forwarded this to me and one other investor so there was not much competition!

How did you finance this deal?

All cash. The owner needed cash quickly and I was able to close it in 9 days.

How did you add value to the deal?

Just basic cleanup, paint, landscape. The house was already in a great condition. The only risk here was that the owner needed 30 days after closing to move out and I was ok with handling the situation where I had to evict them out in case they don't move out but it was fairly smooth process where they moved out after 30 days.

What was the outcome?

I was able to able to rent it for 1695 within few days after cleaning and painting. I am in the process of delayed financing and the house got appraised for 250K.

Lessons learned? Challenges?

There are two important lessons that I learned
1. Building relationship is critical. I worked with the out of state wholesaler in another deal (that did not close, crazy story where owner went behind our back) and so the wholesaler already trusted me.
2. Sometimes you can just get plain lucky by being at the right place at the right time.

@Steve Stinson thanks for sharing! Do you know whats the employment numbers for Blue Origin? The last I had read it was less than 100 which is really not much. 

@Bobby Forsythe

I usually rely on the Sq footage to estimate my numbers. For eg, if I know I need to change the flooring for a 1600 Sq ft house, I have a per sq ft number (like 3.5$ per sq ft labor + material), same thing goes with paint, roof, hvac etc. Complete bathroom remodel I usually estimate somewhere from 7-8K. The "Estimating rehab cost" book by scott is a great book.

Again, this are just rough back the envelope numbers, which I use to estimate rehab by just looking at pictures and then I add a 10% buffer on top of my estimate.

And then I also get help from other experiences investors to make sure I am not missing anything.

Hope this helps.

Agree with @Lane Kawaoka, 900 is not a big number but its all good in building the momentum! 

With Elon Musk reviving the space exploration I wonder why Huntsville is not getting a lot more attention, I wish blue origin or SpeaceX open big R&D centers in Huntsville.