First accepted offer!

[Devin Williams]

BG Peeps! 

👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾Just had to share that we are under contract on our first property (single family, 3 bedrooms, 2 baths, basement and garage). 👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾

The details! (almost forgot to share) - note we have not closed yet so send all the good vibes this way.

COC (cash on cash return): 9.01%

Purchase cap rate: 8.19%

Monthly cash flow: $225

It is an estate sale that we plan to buy and hold and hold and hold. It is in fairly good condition in a decent neighborhood which also happens to be the childhood area for one of us. We'll need to build up equity for quite some time before we can consider refinancing. Was really hoping to BRRRR. In some ways we just really needed to get in the game and this is a low risk area of investment for us. Wondering if we should have held out of course for a better deal.... we will be out a down payment and rehab money at the end of this (~25k all cash). Considering getting a loan to finance the rehab if for no other reason to save cash.

Already thinking about our next opportunity but we won't have enough cash left to meet any funding requirements for downpayment regardless of the lender. The market out here has gotten crazy, multiple offers on homes in areas that would NEVER have been touched a year ago. It's unbelievable... Ideally we'd like to flip but those seem to be fewer and get sold over listing price now - even in C rated areas. It's madness out here. We don't have hundreds of thousands of dollars but thought we could get a couple properties underway with our initial cash, some financing and creative fundraising. It is proving to be a real challenge. Hard money lenders just don't seem to be an option here, can't find a reputable, responsive, nor available HML willing to fund our area and since we're so "new". We even went so far as to create an LLC a few months ago since that is a requirement with these lenders.

Going to finish reading, 'Raising Private Capital' but a lot of the ideas seems so far out of reach for us. Trying to read these books and listen to podcasts with an open mind but very aware of the level of "privilege" that is the undertone of many of these stories. Regardless going to try it all possibly coming up with our own formula by the end of it.