Another update:
My Updates are speeding up because I hired a different contractor. For most of this work, I was using the team that my property manager had. They were not bad, nor did they do bad work, they were just too busy handling other things and were not able to move quickly here. long followers of this thread will find a schedule I laid out (I think it's here anyway) that I wanted to have this place turned at a rate of 1 unit per month, so it would take approximately 7 months. I made that decision in late jan/early feb and had them get to work.
As expected, "old house stuff" started happening. pluming issues, light structural stuff, as well as some mistakes by me (they were doing work in 3 different units simultaneously, instead of 1 at a time. this was fine but cost me a boatload of money and did not result in increased income from the property).
After way too much prodding, I called more contractors. One didnt call me back, and one called me back by the end of the day, was available to meet the next morning to talk about what I needed done. (sidenote: I get very annoyed by the contractors who wont give you the time of day/demand you name your first born after them during busy times but when the economy crashes they call you up begging you for work....I digress)
The guy I met with was ready to go, had some great Ideas and our styles meshed well. I told him I didnt want to babysit him but that I would be checking his work from time to time. He's been great - shown up on time, works quick and has some great ideas for the 'unique' spaces that i've presented him with. This contractor will likely have a unit turned in 2 weeks, where it took 4 months for the others - though that included a lot of behind the wall stuff that needed to be done.
Long story short, I should have a second place ready to rent by 10/15 at the absolute latest (im expecting 10/7 or 10/10).
For those number people that noticed I rented the first one for "way more" than I expected, I went and re-thought my BRRRR calculation over the weekend. Here is where I'm at:
Purchase Price: 160,000
Down Payment: 40,000
Initial low-end ARV: 390,000
Initial high-end ARV: 415,000
Approx New ARV: 515,000
Yes, a 100k increase. I think I budgeted low initially, and I also think that even at 625/mo for the one that has been rented, is low. The one with my tenants is at 625 and is a 1 br/1 ba. I have a studio almost ready that should be in the 550 range, but the next 1br (there are 5 total here) I'll advertise for 635 and keep upping by 10 until they have all been turned or they arent moving quick.
Hoping to have another 1-br on the market around haloween - and that includes the studio that should be rented by then
Thank you bigger pockets, this deal will likely make my business, and I couldnt have done it without all of you. Your advice has been invaluable, and I have not forgotten all the phone calls with people who have helped me and I've always been trying to pay it forward. I've met up with and talked with many aspiring investors from the site, so anyone reading this and has questions/wants to get started/whatever, PM Me and we can chat.
I FHA'd my first multi, and if you've got a pulse and a small saving account, you can too.
