Just put house under contract-Oh crap-Here goes nothing

[Chris Svendsen]

Long story short got a great lead on a property from our realtor who cannot act as our realtor as has a interest in the entity that is selling the property.  Price is good and when we first looked at house was going to flip it. Now since world just turned upside down we moving to renovating and adding it to our rentals. 

House is in a great area, should be easy rental but needs full rehab.  Feel like we are doing everything right and wrong all at the same time.  Here is where my mind is right this minute.  AS things move one will update everyone.  Hopefully this be a success story and not a flaming disaster.

House cash purchase only, had a HELOC on another rental we have, used $80K from that to purchase the house. I have this as a positive.

Rehab budget was coming from a cash out refi on primary house however that has been taking way longer than expected, now worried may not get it done due to the 80K just used to buy other house.  If this does go through will have $50k to use for rehab and mortgage payment only going up $52 dollars a month.  If does not go through no idea yet where going to get money to do rehab.   This is a positive and negative for now.

Currently home is a 4 bed, 2 bath house in town with a nice yard and garage-bonus for in town.  Can make up to a 5 bed/3 bath house but now going to keep at 4 bed/2 bath to keep rehab cost down.  This house type highly sought after in area for rental-Good thing

ARV should be around $240-$280k depending on how much we do to house. Should be perfect for a BRRRR as looking to get money back with a refi of house once done. Possible problem these may not be available-This is a possible negative.

Might be put out of work shortly.  Good as will have plenty of time to do work on house and can save money from paying contractors.  Bad in that will be short a large amount of income to pay my personal bill-BAD!

That's all I got for now. Just wanted to throw up a quick post. On the podcast they keep talking about being greedy when others are fearful.  Well I am full of fear, all my friends and coworkers tell me it a bad idea, should back out, and family think I am going to be living out of back of the station wagon.  All this gives me the feeling that even though scared as hell, if we follow plan and keep to numbers this will be another home run for us.  Keep moving ahead, no matter what.  Wish me luck, think we are going to need it.