All Forum Posts by: Ryan Young

Investment Info:

Single-family residence buy & hold investment in Hattiesburg.

Purchase price: $67,000
Cash invested: $16,600

List price was $72,500 and worked out a purchase price of $67,000 including $1,200 in closing costs covered by seller, foundation was repaired prior to closing ($3,500), and seller paid all of the realtor fees as well since it was FSBO. Tenants signed a 12 year lease agreement for &900/month and moved in the day of closing. My PITI is $478, so this property is cash flowing nicely. It is in a great area and am very pleased with how this deal worked out.

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

This property was a FSBO on the MLS. I offered him $10k under list price to see if he was motivated and worked up to the purchase price from there.

How did you finance this deal?

Conventional Loan with 20% down

How did you add value to the deal?

First was to negotiate the price down and to buy at the right price. I purchased for $67,000 and it appraised for $81,000. After the lease agreement expires with the tenants I have in place, I will spend roughly $10k-15k to update it and will appraise for roughly $115,000.

What was the outcome?

So far, so good. Tenants moved in the day of closing and has been great so far. Very happy with this deal.

Investment Info:

Single-family residence buy & hold investment in Hattiesburg.

Purchase price: $67,000
Cash invested: $16,600

2nd property to add to my portfolio. This was on the MLS for only a few days before I put it under contract. List price was $72,500 and worked out a purchase price of $67,000 including $1,200 in closing costs covered by seller, foundation was repaired prior to closing ($3,500), and seller paid all of the realtor fees as well since it was FSBO. Tenants moved in the day of my closing for $900/month and my total monthly payment is $478, so this property is cash flowing nicely. My future plans are to put roughly $10k-$15k in cosmetic updates then eventually refinance to get my money back out and hopefully plus some. Very solid deal.

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

This property was a FSBO on the MLS. I offered him $10k under list price to see if he was motivated and worked up to the purchase price from there.

How did you finance this deal?

Conventional Loan with 20% down

How did you add value to the deal?

First was to negotiate the price down and to buy at the right price. I purchased for $67,000 and it appraised for $81,000. After the lease agreement expires with the tenants I have in place, I will spend roughly $10k-15k to update it and will appraise for roughly $115,000.

What was the outcome?

So far, so good. Tenants moved in the day of closing and has been great so far. Very happy with this deal.

Just wanted to give an update:

Close date is set for Friday, 4/26! Appraisal was less than I expected (81k) but still a great deal. Repairs are being done now and will be finished up in a few days. My repair cost is $1,000 and includes painting living room, bedrooms, installing new ceiling fans in all bedrooms, and a few drywall repairs. Tenants will be moving in on 5/1 with a monthly rent of $900. PITI ended up being $478. Very happy with this deal.

Now time to move on and find my 3rd!

Welcome to Bigger Pockets! I know you said you are on the Coast, but if you ever have any properties in and around the Hattiesburg area, please let me know! Good luck.

What do you all think about using a line of credit for rehab costs?  I just put a house under contract the other day and requires 4-5k in repairs/updates.  I was originally thinking about using my own cash, but my realtor brought up the fact that maybe a line of credit would be a better option so it doesn't wipe out more of my cash after the 20% down payment for the house.  I'm thinking using the line of credit and then pay it off when I refinance the home in 6 months (after the seasoning period).  Any feedback on this would be great as to if this would be a good strategy or not.  Thanks!

I just put my 2nd rental property under contract today!  It was on the market for only 6 hours before I got this deal done.  Here are some of the details:

Listing Price: $75,000

Purchase Price: $67,000 (w/ $1,200 in closing costs covered by seller)

Estimated Current Market Value: $90,000

Repairs: $3000

Potential Rent: $900

PITI: $460

Very excited about this deal.  It is in a very good neighborhood (only 2 blocks from my other property) in the southern Mississippi area with a huge yard. l'll be able to get it rented out very quickly as this area is in high demand.  I am using a Conventional Loan with 20% down and funding the repairs with my own cash.  It already has new carpet, new appliances, AC was replaced only 2 years ago, foundation was leveled out (raised foundation), and a few other repairshave already been made.  I plan on doing some minor updating in the kitchen and bathroom in the near future and eventually do a cash-out refi to get my capital back out to purchase another one.  Ready to get my 3rd property now!

Thank you guys for the feedback.  Since it has been 15 minutes, I am unable to delete or edit.  Rookie mistake on my end! 

I currently have 2 Single Family units and am looking into the possibility of buying my first multifamily unit. The goal for me is to replace my 9-5 income and I believe a mixture of SFH and Multifamily will be the quickest way. I have come across this 10-unit in Hattiesburg (where I do all my investing) and would like to see what you guys think about it. It is listed at $295,000 and could use a little bit of work. It is directly across from the university and I think could be a great property. The current rents are around $400-425 per unit but I think with a little bit of work, they can be around $500 per unit. I would bring on a partner to help fund the 20% down payment and eventually refinance to get capital back out. Look forward to hearing what you guys think.

https://www.loopnet.com/Listing/528-N-26th-Ave-Hattiesburg-MS/14805044/

Just put my 2nd property under contract! I bought my 1st one back in August and it has been going great.  Here are a some details on this one:

Listing Price: $85,000

Purchase Price: $75,000 

Rehab Cost: $8,000

ARV: $130,000

Rent: $1,200

I am using a Conventional Loan with a 20% down payment.  I brought in a partner on the deal and we are splitting the down payment and rehab costs 50/50.  We will then split the cash flow 50/50 but the equity will be split 60/40 since I am doing all the leg work (found the deal, managing the rehab, etc.).  With the numbers on this property, it still made a lot of sense to split the cash flow as we will be getting around $250/each.  We plan on getting a renter in there ASAP and will refinance in 6 months to get our capital back out + some.  My goal for 2019 is to 5x what I did in 2018 so I am on the right track to purchase 5 properties this year.  Very happy with how this deal turned out.