Small deal, but 100%+ financing

[Cody L.]

I don't normally buy small deals, but if they're in my area of Montrose (the hip area of Houston), I'll snatch them up. This was a 10 unit that was actually on the MLS (so no 'off market' know-a-guy type deal). Lucky for me the lady selling had no leases, no financials, and all offers had to have no financing contingencies. That rules out most buyers. Doesn't rule out me as I don't rely on seller financials and I know how much per door it should be worth.

I wasn't the highest bidder but I was willing to do $200k hard day 1 and close in 7 days, so I got the deal (they only did one day of showings and had 21 people show up and 11 offers)

I paid $815k.  Before I even closed I was offered $1.1m (I countered at $1.2m, they passed).   Point being, it was a good deal.  Right after I closed I started the refinance process, which just concluded.  It was appraised for $1.1m as is and $1.3m 'as repaired' (as we're upgrading some items).  A bank just did a loan for $900k.  Meaning I now own this property with $0 out of pocket, and in fact, extra $ in my pocket (so I can rinse/wash/repeat)

The property easily cash flows with this debt, and it's in a hip area so I can count on good appreciation.  This is the forth deal this year to be closed cash, then refinanced where nearly all or more than all my cash has been returned.  I posted about my downtown deal where I paid ~$2.1m, put in about $300k, and 2 months after buying had a $2.5m loan. 

Moral of the story:  If you can get yourself in a position to buy something quick and aggressive using cash (admittedly easier said then done -- maybe F&F?  Investors?) it's not that hard to get a deal that you can refinance and get all your cash back to do the same thing over and over and end up with a nice collection of cash flowing properties with infinite returns.