First Purchase in the Books!

[Timothy Doenges]

Hey all! Super excited to tell you all that we have closed on our first deal! Not a home run, but I’d rather hit a single at my first at bat than swing and miss.

Found this property on the MLS, out of an estate sale. 2 bed, 1 bath, 1008 square feet. Originally listed at $55,000, ended up under contract for $26,000; appraisal after repair just came in at $60,000; should rent for $650-$675/month. Full basement that is dry but unfinished. Good opportunity to frame out an efficiency apartment downstairs in the future and turn 'er into a duplex with an additional $450/month.

First, no shower in bathroom, so we are adding one; removing a claw foot tub, and putting in a tub/shower insert.

Second, the back deck was falling off; for a cool 2 grand, we are putting in a new deck and adding a set of stairs to the backyard.

Third, we heard that the heating bill was $600 per month and when we looked at the property, all the storm windows were leaking cold air and some were cracked. Replacing all he windows and putting seals on the doors should save us a ton in holding costs and keep our renters from leaving due to high utility costs.

A little elbow grease on the hardwoods and adding some waterproof vinyl to wet rooms, and the floor will be good to go.

Kitchen, we are moving the 220v for the stove beside the fridge and then replacing 1960’s sink with a wall of cabinets and a sink under the window.

We have found a property management company that has a GC on staff and several subs that charge low rates per hour. They said they charge cost of labor plus the exact rate for subs (no upcharge on labor) since they make their money property managing, and the faster the property is rented, the faster they make money.

We also found a lender that will refinance our properties into a 15 year commercial loan on secondary market, rates in the 5’s, no seasoning required.

Once we get the hang of the BRRRR strategy, I think the sky is the limit here in Southern WV!
Hoping to scale ASAP and get to 20 units by end of 2020.