All Forum Posts by: Josh Franklin

@Matt Bailey thanks man. That’s the route we are going and I’m going to manage the property myself. Cash flow looks good and out lender will let us do 80% if we want.

@Jonathan Pliszka this particular property is actually in Versailles. We are looking all over Lex and surrounding counties currently.

@Max Sherman thanks a lot. It was definitely a great find (off market, lot of work) and the gentleman we purchased from still made money on the deal as well. He just decided it was more work than he wanted to put in. The ability to do this work at cost and do it quickly is what I hope will make this a very good property.

@Michael P. That’s definitely the direction I’m leaning. Wanted to put it out to folks here just in case there’s something I’m missing. Thanks for the input!

Hey everyone - I'm a new investor located in Lexington, KY. Before I get to the deal I'll provide a little background. I have 4-5 friends who have gotten into real estate investing over the past several years. I was always curious, but have a job I love and never wanted to spend the time to get involved. I knew there was plenty of potential (my wife and I have bought and sold several homes in our 7 years of marriage and have done well on them) so when I was stuck at home for 2-3 months I started reading Rich Dad Poor Dad at the behest of a close friend. Fast forward 3 months and I've read more books and listened to more BP podcasts than I had the past 10 years. My father is a general contractor and had purchased a property last year mainly due to an investor friend of his who encouraged him to do so. Once I learned about the BRRRR strategy I explained how it worked to my dad and helped him through his refinance on his rental property which he owned outright (cash purchase, cash rehab). We decided to go into business together and he seeded our REI company with the proceeds from the refi.

Now onto this deal. We have looked about 10-15 SFH and duplexes in the past 6 weeks or so. We had a few that we made offers on but ultimately lost out to higher bids. We met an investor while out one weekend and he had an off-market property that he was thinking of selling. We saw it, loved it, ran comps, and bought it. Here are the deal points below. The one thing I'm struggling with is to flip it and create additional capital for us, or to hold it and rent. Feel free to offer up any thoughts to what you believe we should do. I know that the long term goal is buy and hold to build wealth, but additional capital in the short term may allow us to do multiple properties at once.

Purchase Price: $75K

Rehab Estimate: $60K

ARV: $200K

Estimated Monthly Rent: $1,500

*This is a cash purchase and cash rehab so no holdover costs. The home is in a good neighborhood in a good school district and is roughly 2K sq ft. We are taking it from a 3/1.5 to a 4/2 and the renovation is expected to take 4-5 weeks. The rehab estimate may be slightly high, but really confident it would be no more than $60K. If this was your property what would you consider if trying to rent or flip?

I would keep them and reevaluate in 5 years or so. Are you able to project appreciation on these homes based on the previous homes you built? I would definitely take that into account as well. 

Hey @Tanner Jones what they're telling you above is definitely true. I looked at a property today that failed inspection previously and the buyer couldn't purchase due to not being able to get a conventional loan. My partner and I are cash buyers so I thought this would be good for us (submitted an offer but apparently there's a higher offer on the table that hasn't been accepted yet, so we will see). I would recommend you try to find some local real estate groups in your area and ask others about hard money lenders. If they feel the numbers check out you may be able to find someone who would lend you both the money for the purchase and the rehab, but with this being your first purchase they would most likely want to be more involved. Just a suggestion. Best of luck.

Looking to expand into the Cincinnati/NKY area. Looking for intros to any realtors or wholesalers and property managers. I have GCs in the area. Thanks in advance!

@Michael X. Wang thanks a lot Michael. Well done on your portfolio! I’m trying to soak up as much info I can currently. Listening to a lot of BP podcasts, reading, etc. biggest thing for me now is just networking and letting realtors know (and others) what I’m looking for.

@Timothy VanWingerden thanks a lot. I’m a member of that group. Actually going to see a property tomorrow.