All Forum Posts by: Mike DeWitt

Hello!  

Looking to scale our small investing operation by adding a part time marketing/media professional to help design and maintain our web sites, social media, and experience resume.

Please reach out if you're interested! 

Cheers,

Mike

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $189,000
Cash invested: $43,000

Bigger houses do not mean better! We tried to take down a 5/3 SFH BRRRR and it crashed -- could have been worse and plenty of lessons leanred!

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

We thought scaling up meant we could graduate from "slumlording" to buy a larger house in a nicer neighborhood.

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

Wholesaler and paid $20k over asking :/

How did you finance this deal?

Partnered 50/50 with the same partner who helped out with our first partnership

How did you add value to the deal?

This house was purely cosmetic. We did not add any beds, baths, or square footage

What was the outcome?

Our total project cost was around $230,000 and our Appraisal came back at $250,000. We left A TON of cash in this deal, but at the end of the day, we still provided solid returns to ourselves, and our partners for risking it for the biscuit!

Lessons learned? Challenges?

Our total project cost was around $230,000 and our Appraisal came back at $250,000. We left A TON of cash in this deal, but at the end of the day, we still provided solid returns to ourselves, and our partners for risking it for the biscuit!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $72,000
Cash invested: $29,000

After a crazy partnership, we decided to go back to the basics and buy and rehab small for massive ROI

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

Our Property Manager owned this property and rented it to his employees. He was ready to offload and he hooked us up!

How did you finance this deal?

HELOC and cash

How did you add value to the deal?

Added a bathroom and bedroom

Lessons learned? Challenges?

We're getting pretty good at this!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $72,000
Cash invested: $29,000

BRRRR # 4

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

Our Property Manager owned this property and rented it to his employees. He was ready to offload and he hooked us up!

How did you finance this deal?

HELOC and cash

How did you add value to the deal?

Added a bathroom and bedroom

Lessons learned? Challenges?

We're getting pretty good at this!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $120,000
Cash invested: $85,000

First Partnership provided plenty of lessons and plenty of upside!

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

We had some ambitious goals to acquire 5 deals in 2021. We knew to scale, we had to figure out how to partner and how to use OPM to generate mutually beneficial returns

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

This deal was found via a wholesaler

How did you finance this deal?

We used our cash from previous deals to fund the acquisition and partnered with a high school buddy to fund the rehab

How did you add value to the deal?

We budgeted 55,000 to add one bedroom and bathroom per side. We were SURE this would provide the value we needed to BRRRR our money out.

What was the outcome?

After plenty of headaches, lessons and sleepless nights, we provided 25% ROI for ourselves and our partner on our first partnership!

Lessons learned? Challenges?

Little comparable multi families had our first appraisal significantly undervalue the property. We underestimated the rehab by 90%. We thought for sure our friendship, partnership, and future in RE was in jeopardy. Luckily, my friend is as patient as he is ambitious, so we tried another lender/appraiser and got the place valued at $255,000. Although we did not successfully pull out 100% of our contributions, we were able to only leave 10% in the deal and provide great ROI for our partners

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $245,000
Cash invested: $56,000
Sale price: $330,000

We converted the dining room into an office/bedroom by adding french doors and a closet. We also did a full cosmetic remodel on the kitchen and bathroom to improve the value significantly.

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

We needed a house to live in and couldn't find a house to hack!

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

This deal was on the MLS for 90 days. The seller was an investor who was tired of dealing with tenants.

How did you finance this deal?

We used private money to fund the acquisition and we used our personal savings to fund the rehab.

How did you add value to the deal?

We converted the dining room into a bedroom/office by adding french doors and a closet. We also did a full interior cosmetic remodel.

What was the outcome?

Added significant value and found that raising money for a project is not hard if there is a solid plan.

Lessons learned? Challenges?

We learned that raising money is not as difficult as we thought. We presented our private money lenders the scenario in an organized and professional manner, signed a promissory note, and provided the investor significant returns!

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

Sanford Realty Renovations was a great partner to have for the rehab!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $49,500
Cash invested: $24,000
Sale price: $115,000

Our second BRRRR turned out a ton better. We achieved INFINITE CoC ROI and ~$250/mo cash flow.

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

We liked the idea of "recycling" our cash to keep acquiring more cash flowing rentals.

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

We found this deal using a local wholesaler. We paid full asking price.

How did you finance this deal?

We used a HELOC on our primary residence to purchase. When we refinanced, we were able to pay the entire balance off!

How did you add value to the deal?

We added a half bathroom, granite counter tops, painted cabinets and new LVP floors and fixtures.

What was the outcome?

$250/mo cash flow and infinite ROI

Lessons learned? Challenges?

This one was a bit smoother than previous investments. We did learn to ALWAYS start with permits and to trust local boots on ground to select appliances for these types of homes. The refrigerator took up the entire kitchen!

Would love to here about more meet up opportunities in the Dallas area!

Hi Michael,

I'm currently in the Air Force and invest in RE long distance from Boston, MA (property in New England is pricey).  We just got an assignment to the Dallas area and are looking to start investing locally.  

We've got a few flip partnerships under our belts and a couple rentals as well and would love to talk more about what you're looking for.  

Thanks,

Mike

[email protected]

My fiance and I started using rental hero once we acquired our second property. It's pretty simple to use and gives you an overall picture of your situation, along with individual breakdowns. For people who are not super accounting-savvy like us, I would definitely recommend it.