All Forum Posts by: Ryan Betzing

Hello BP,

My name is Ryan and I’m a new investor from San Angelo, Texas. After listening to the audiobook “Hold” and reading BP non-stop for about 2 months, I finally dove into the investment game head first and I love it. I just purchased my first two investment properties here in San Angelo. Here are some quick details:

Property 1:

ARV $95,000

Purchase price - $40,000

Repairs - $15,000

I financed this property through a local bank with zero down and was able to finance the 40k purchase price plus the $15k for repairs over 20 years at 5%. I think I can rent the property for $850 a month which would give me about $30 a month in positive cash flow.

Property 2:

ARV $105,000

Purchase Price - $50,000

Repairs - $10,000

I financed this property through the same bank with zero down and was able to finance the 50K purchase price plus the $10K for repairs over 20 years at 5%. I think I can rent the property for around $1000 month which would give me about $10 a month in positive cash flow (this one has much higher taxes).

So here’s my question – I think I followed the steps outlined in “Hold” and now have 2 properties with zero down which should provide a small positive cash flow. On the other hand – I think I could sell the properties pretty easily and probably walk away with around $70K in capital. My long term goal is to buy and hold and achieve financial freedom through rental income. I have a good paying full time job, so I won’t use the capital for anything but additional investments.

Both rehabs will be complete in a couple of weeks. What would you do if you were just starting out? Rent for a small monthly cash flow, or flip to build some capital?  

Thanks,

Hello BP,

I've been lurking for a couple of weeks and wanted to introduce myself and share what has been an exciting start into the world of investing. My brother in law has been investing off and on here in San Angelo for over a decade, mostly just a few flips and owner financing out a couple of houses. I told him I've been wanting to start investing and we created an LLC this past June.

In July we purchased our first property - we picked up two houses on the same lot for $10,000 at the county tax sale.  We each kicked in 5k and our adventure was underway. One of the houses on the tax property was a completely gutted one bedroom and the other is an efficiency home which was in need of some TLC but in decent shape.

Shortly after purchasing the tax property we found a 4 bed, 1 bath home which later appraised for $105k and the seller accepted our offer of $40K. My brother in law has a great relationship with a local bank and was able to get a zero down loan for $55k. We’ve spent $10K replacing the roof and carpet on the 4 bedroom home and the other $5k on fixing up the little efficiency home on the tax sale lot.

About a month ago, a coworker of mine foreclosed on a 3/2 home he had owner financed and decided he wanted to be done with the real estate game. After looking at the home, we offered him $50K for it. Once again, we were able to get the same bank to loan us $60K with no money down. We are currently using the extra $10K to replace the roof and flooring and some other cosmetic touch ups. This home just appraised for $105K. 

We also just rented out the little efficiency home for $395 a month. We estimate the other property on the lot will take about $12k to fix up and we can rent it for around $550 a month.

So the question is – what is the best way to maximize on the pieces we have in place? Both of the homes we financed are almost ready to either rent or flip. I think we could get a small cash flow on both homes if we decide to hold and rent them. However, if we can sell each home for ~100K, now we have maybe 80K in capital to work with...tempting as well.

We'd really like to fix up the little one bedroom on the tax property and get it rented out. Our long term goal is to build a large portfolio of SFR, so it feels wrong to flip the first two deals we land, but injecting some capital is tempting as well. Any feedback/thoughts/discussion would be greatly appreciated!