All Forum Posts by: Phil Laundy

@Mike D'Arrigo - yes Kansas City is a good market and we currently do flips here and own a duplex here. Currently looking to buy more. But we want to be on the Gulf Coast for 2 reasons. First- we hate winters here and are looking for a second home where we can spend a couple months a year in an area where my wife grew up and we regularly vacation. Second, I’m hoping there will be an opportunity to find some deals on short term rentals down there in the coming months. We’re still pretty young investors. Only doing this for the last 3 years as a sideline business. Hoping to grow and diversify. 

Awesome. I will be in touch. I see that you are from parish. My wife is still upset at me because we did not buy her grandmothers old farm home in Parish When it went on the market a few years ago. We plan on living down there within two years but I doubt I will make that one up to her.

We currently live and invest west of Kansas City. We are beginning our search for a second home (and eventually short and long term rentals) in the Bradenton/Sarasota area. We’re also open to St. Pete & AMI if prices drop. I’ve read David Greene’s book on long distance real estate investing and recently spent a decent amount of time driving neighborhoods in these areas. 
I’d love to get a few great referrals to help me narrow down my funnel of awesome agents before I get started. 

This is not a question regarding the merits of flipping vs. renting. The question is this:

When you analyze a Particular property and it looks like it would work as a flip or rental, how do you decide between the two?  Is there a specific defining metric, Predefined mínimum numbers or just a feel for which would be better? 

Investment Info:

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

Purchase price: $93,000

First buy and hold - Brrr Duplex. Purchased for $93k. Repairs - $22k. ARV - $167k.
Portfolio loan refi - $115k
Gross rent - $1490/mo. Holdback - $300/ mo & cash flow - $275/mo. CoC ROI - infinite

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

Been looking for a good rental for awhile but specifically a brrr deal since reading Brandon’s book and listening to podcasts.

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

Our reputation for doing flips led to a referral for this property. We looked at it and made an offer the same day. We were actually looking at a different property that was very disappointing and we were like hey, we might as well check out that duplex while we’re out driving!

How did you finance this deal?

Heloc to purchase and then refi at our local bank we’ve used for 15 plus years. They’re awesome.

How did you add value to the deal?

Added a bedroom and half bath to the vacant half for added monthly rent. Also raised the rent on the other side by our state’s max of 10%. It was under market rent by about $100/mo.

What was the outcome?

So far it’s been a really good rental. We paid a little more than I wanted to but I didn’t want to lose it. (The neighbor had already made two lowball offers).

Lessons learned? Challenges?

I would have liked to get a better rate on the loan but I didn’t want to wait a year for seasoning. We were able to refi almost immediately after repairs (3 months after purchase) with our portfolio loan but paid an extra percent in interest. Also, really struggled to decide whether or not to pull out cash. In the end, played it safe. (Dave Ramsey background😬)

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

Community National bank in Tonganoxie, Ks were so helpful as usual.