All Forum Posts by: Justin Pickering

 Sorry! I am building this profile today and posting my experiences. This particular one took place in 2020. I did all the work minus the three things that had to be contracted out (roof, electric and plumbing). The house had a family room that I turned into a master bedroom by adding closets (turned it into a 3 bedroom vs 2) and we added a bathroom (had a large sun room that we turned into a pantry, bathroom and laundry room). My guess is this same RENO 4 years later would cost closer to 130k!

This was in 2020 so obviously things have changed. Also, in 2020, I didn't even know what a hard money lender was! Banks typically won't loan less than 50k, so at a 48k purchase price I had to do a renovation loan and add some of the renovations to the loan. It needed a new roof, new plumbing and re-run electrical which all require permits anyway so I structured those in the loan:

Purchase Price - 48k

Renovations built into Loan (roof, electric, plumbing) - 40k

Loan after 20% down - $70,400

I then had a 15 month zero % interest credit card that I did the other 20k of renovations with. In 6 months I did a cash out refi at 150k (75% of 200 ARV) bringing me to around $79,600. I paid off the 20k in credit card debt and recouped my down payment of $17,600 leaving me 42k for the next deal.

Looking back at it now I realize there are better ways to structure this with creative financing but at the time I didn't know about it. One thing I am proud of is I got started! It wasn't perfect but still netted 42k while making $400 per month every since. BTW, I had never done a renovation in my life. Learned it all on YOUTUBE....got in there and figured it out!

Nathan,

Of course it does!....and Ill never know. The house appraised at $260k after we put 30k in renovations into it so I am happy with it. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $220,000
Cash invested: $40,000

Currently for sale at $300,000

Lessons learned? Challenges?

This is the nicest of our rental portfolio; however, it has gone three months without renting!!! Biggest lesson learned from me is a nice house doesn't mean affordable. The average citizen in Crestview, Fl can not afford a $2,200 per month rental. I have marked it down to $1900 and still no traction. $1800 seems to be the top of the price point in this town. Buying cheaper houses and simply making them livable is all people want in this town.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $166,000
Cash invested: $30,000

Ran into my neighbor in the back yard and he had an agent with him. He jokingly said want to buy my home and I seriously said YES! Made an offer and he accepted on the spot.

How did you finance this deal?

Conventional

How did you add value to the deal?

Kitchen and bathroom remodel
Flooring throughout house

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $46,000
Cash invested: $60,000

BRRRR - ARV of $210,000
48,000 PURCHASE PRICE
60,000 IN RENOVATIONS
CASH FLOW AFTER REFI - $400, PLUS RECOUPED CLOSING COSTS AND 60K IN RENO

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

BIGGER POCKETS!

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

ZILLOW AND IN PERSON

How did you finance this deal?

RENOVATION LOAN

How did you add value to the deal?

COMPLETE GUT OF THE HOUSE, PLUS ADDED A BATHROOM AND TURNED FAMILY ROOM INTO A MASTER BEDROOM