All Forum Posts by: Patrick Eldridge

My wife and I have been able to do  complete rehabs for under 12k per door. The key to our success is to not view the property as our own home . We do not go above and beyond and keep expenses to the minimum. We buy everything 2nd hand. We’ll purchase kitchen cabinets off Facebook market place, water heaters, appliances, and etc. Our building materials we buy from retail discount stores that purchase Home Depot/lowes returns by the trailer loads. Most items have small imperfections that a home owner wouldn’t want but for a rental property they are perfect! An exterior door that has a dent or scratch for 100$ vs 500-1000+, a bathroom vanity that has a crack on the backside for 50$ vs 500$, and so on.  We’ve been able to purchase 32 doors in 2 years with no private money following the brrrrr method and doing everything ourselves. I am now a licensed insured home inspector/contractor that can redo plumbing to wire up electrical panels and etc and currently becoming hvac certified.  YouTube is a powerful resource to learn everything.

When doing rehabs my wife and I always ask one question, will this make us more money? So the question is by removing the paneling and installing drywall and etc will that work generate more monthly income with rent? In our market it would not so we do not do it. 

What I’d give to be 19 and the knowledge I know now lol. My wife and I follow the brrr method and do all of the renovations ourselves. We’ve learned how to do everything construction why’s over 10 years by watching YouTube videos. But we’re  very creative with buying properties with no capital. We inflate the sales price and ask for maximum sellers assist. On commercial loans there’s no limit for sellers assist. So for example if the seller is asking 120k we offer 150k with 18% sellers assist and we wave inspections because I’m a licensed/insured home inspector now. But anyways that leaves us with 27k credit at closing towards the hud fees and the sellers get 123k. We also keep construction cost down by buying used Kitchen cabinets/appliances off Facebook market place and buying materials off people who sell lowes/home depot returns. All across the country they auction off their returns and people buy them by the trailer loads and sell them for a 1/4 of the price. 

My wife use jersey shore state bank, they do 80% with no seasoning.

My wife and I have our kitchen renovations down to 1500$-2000 by shopping on Facebook marketplace for used cabinets, fridges, stoves, and etc. We also found a local person who buys lowes/Home Depot trailers of returned items. We do all of the renovations ourselves and have a few employees. 

there’s a cap of 6% sellers assist on non commercial loans but commercial loans have no cap and the bank didn’t even know the answer because no one ever asked. We’ll my bank applies   The uncapped sellers assist towards the 20% downpayment, we’re just responsible for the remainder of the closing costs if any.