All Forum Posts by: Patrick Rhodes

Austin, it is great to see someone with a plan especially someone sub 30. I am just south of you in the Coffee County and surrounding area of TN. I believe the goal is great and totally doable. 

I do have many questions for thought...

Are you planning on living in Nashville or how far away? How are you sourcing the first deal? Are you thinking you will reach 1million in equity on 3 properties or is that an outline of the start?

It would be awesome to connect.

Great question: The title company or closing attorney will payoff all liens on the home out of the proceeds from the refinance. I hope this helps. Example: The ARV is 150k and your refi lender will lend 80%. You will have a refi amount of 120k which would net you 15k minus any expenses and escrows for taxes and insurance that the lender would require. Happy Investing

Great question and something I believe we all deal with. No one wants to pay unnecessary interest.

Is your plan for the 100k to sink it in the next deal or to continue to move it in and out of deal after deal.

If you are planning on sinking it into the next deal and leaving it there, I would cash out once you identified your next deal or are in the timeframe to buy the next deal that fits your buy box.

If you are planning to use it and turn it over several times then I would lean towards the HELOC. Apply for that ASAP.

Hope this helps and Happy Investing

Investment Info:

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

Purchase price: $150,000
Cash invested: $35,000

I purchased this residence fully occupied and it was being rented well below market value and in need of a remodel. I financed it with the owner for 15 years at 3% interest. After turnover & remodel it cashflows $1000/mo.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $62,000
Cash invested: $35,000

I purchased the single-family residence for $62,000 using a private money loan for $105,000. I paid an additional $35,000 out of pocket to do a complete remodel/renovation. I now have it rented at $1600/mo which is earning $489/mo in cashflow.

I refinanced it for $205,000 which cashed me out at $65000 in tax free money. The current appraisal value is $285,000 which gives me $80,000 of equity in the home.

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

It cost me very little out of pocket, I borrowed almost all of the money from a private source and bought the house for a price that was way under market value. This was my first investment and I knew it would be a catalyst and open more doors for me to enter the investing side of real estate sooner than I thought.

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

Off-market.

Lessons learned? Challenges?

The lesson I learned would definitely be to add a bumper to the costs you're estimating for the remodel. If you estimate 100k, budget for 120k.

The biggest challenge would be finding honest contractors that show up and do the job right. Also prices of materials were sky high because inflation was on it's way.