Buy, Build, Rent,Refinance, repeat

[Patrick Knapp]

So if you guys don’t know who I am, I’m Patrick Knapp. I’m a full time investor and builder in the Raleigh area.

I hear time and time again how there is no way to cash flow in today’s market. If you take a look at it with a glance ya it’s not an easy thing, but it is still possible. You have to get creative and know what options you have.

Building is the best option imo, so you'll have to buy and tear down it seems like nowadays. So that's what I've been doing with my family. We currently are under contract to buy a .3 acre lot in downtown that is in a frequent transit area, which means we are allowed to build two accessory dwelling units on the lot. we are also zoned for a duplex, so that's the plan! Duplex that will rent out at 3k each side, 1.5k each ADU. Grand total of 9k of potential rent from this property.

There will end up being 4600 sq ft of floor space for all buildings combined. Also we plan to have the ADUs handicap/wheelchair accessible on the first floor.

We are paying $300k for the land and as a builder my costs are lower but let’s use retail so it’s safe. 900k build so a grand total of $1.2mil

If you put 20% down and refinance in a year from now at 5.9 (realistic to me) that would be $24k net after taxes, 7% put for capex and repairs(it’s new), and insurance. Plus 12k pay down every year.

After seeing these numbers and comparing to the cost of buying out right it’s easy to see that building is the best way to go.

I will be doing a video series to track the whole thing for everyone if I get enough interest.

Tell me what you think?