New Investor from North Carolina BRRR

[Neal Little]

I spent my life in construction, working hand to mouth.  I hooked up with a National Builder as a Superintendent and took advantage of the discounts I was given on New Home purchases in my communities.  I would buy one of the first homes, live there for a year and a half while building out the subdivision, patiently letting the builder increase my equity with them raising prices as the community was built.

 Truly an eye opener when my first house was purchased for 225 and sold 18 mos later for 475k...of course I did it again and within 36 mos had cash reserves equal to 3 times my net salary over the same period.  I immediately on the sale of the second home bought a new Porsche. (Idiot, I know.)

 I found an upscale fixer that had been on the market for a year, priced at 650k.  I offered 500k not thinking they would take it, but they did.  I quit my job, leaving my girlfriend partner working, while I went about updating the house.  I loved living in the house, and took my time while fixing it.

 Our plan was to sell it after the 18 months to avoid capital gains.  Finally had it appraised, came in at 1.2m...and there it sat until another 12 mos of payments when we got an offer from the very first couple that came 12 mos earlier. 650k....after much back and forth and essentialy letting the deal go, their agent came over one night and we had a drink.  In the end settled and sold for 750k. 

 I like the lower market houses.  

In the end, we moved across country with a half a bucket of money instead of a full one as planned.  Came to Asheville in 2007, thinking to build customs on spec, but within 24 mos I lost my job, my girlfriend, the cash and my health.  

Moved into a customers basement apartment unable to pay rent, the bedroom was under the front porch. I basically slept 18 hrs a day, recovering.  My sister in CA asked how do you go from driving a Porsche to living under one in 5 years?

I ended up married to the customer who put me up (or down).  I took forever and added a garage apartment over the two car garage. (Using a Lowes 84 mo 5.99 card) I remodeled the basement apartment to be legal and inviting.  We picked up another fixer nearby and used a Home Depot card to fix it.  I split the 2 car into another studio for Air BnB.  I am in fact, an accidental landlord.

Our short term goals are to refi the fixer we rented out, refi the homestead and gather some cash for downstrokes for another 2 properties.

I also just purchased a Mercedes SLK roadster.  I didn't write a check for it.  I paid cash out of my pocket.  The Porsche was 53,850...this one was 2,000.  I wonder now what I could do with that 51k difference.