All Forum Posts by: Johnny Lynum

Investment Info:

Townhouse buy & hold investment in Lynn Haven.

Purchase price: $84,000
Cash invested: $34,100
Sale price: $160,000

Lynn Haven, FL 3 Bdr/2Ba 1,050 Sqft Townhouse BRRRR

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

We have a great rental market.

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

I found this owner from our direct mail campaign.

How did you finance this deal?

We leveraged hard money.

How did you add value to the deal?

We painted the exterior and interior, installed new floors, refinished bathtubs, refinished kitchen cabinets, and installed new windows.

What was the outcome?

Purchase Price: $84,000
After Repair Value (ARV): $160,000
Renovation: $28,000
Closing Cost: $5,500
Interest Payments: $1,100
Rent: $1500

Refinance
75% LTV, 4% Interest Rate, 25 Yr Amortization
Loan Amount: $120,000
Mortgage, Interest, Taxes: $840
Property Management: $150
Cashflow $660

Lessons learned? Challenges?

We leveraged a new property management company that thought we could receive $100 more per month than my estimate of $1400. She was correct as it rented for $1500 in less than one week.

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

I use residential capital partners for my hard money lending.

@Steve Morris Luckily she doesn't have any little ones. But, baby wipes can add up over time!

@Adrienne Green please add me as well!

@Dave Poeppelmeier thanks! Having it in writing and understood upfront will be my way forward for all my future tenants. I need to make sure my property managers use it as well!

@Kyle J. Thanks! I'm going to definitely add that language to my contracts going forward, so it's understood from day one.

@Jaron Walling thanks for the feedback! It puts in perspective. I had the main drain cleared last year with alot of hair. I'm going pass a warning this time and look at adding to all my leases in the future and share expectations upfront.

My plumber just called an informed me that the toilet drain issue was caused by too much tissue being flushed at one time. He cleaned the tub and bathroim sink drains, which were slow, and he pulled out hair and rubber bands! How do I get the tenants to pay the $200 bill for their negligence?

@Joey Sostheim for sure!

@Joey Sostheim awesome job! It's always great to refinance and pull all your cash out of the project!

@Crystal Thomas I can send you my regional director that I deal with at Lending Home if you want she has been great to work with. Also, checkout Residential Capital Partners based out of Dallas, TX as another hard money lender.