Hello all! My name is Katelyn and I'm hoping to do my first investment in real estate and I'm feeling a little lost on what exactly to do and what the best way to do it is.

I am currently renting a house and just recently got notice from the Landlords that they will be listing the property for sale in the next few months. I am not emotionally attached to the property, but I definitely see a good investment opportunity here with how the property is set up! It is located in Stephenville Texas on 4.79 acres (just shy of AG tax status), it has a horse-riding arena with roping boxes and runs, 6 medium-to-large horse turn outs, two 6+ horse stall barns that each have a 3 bed 2 bath house next to them. Yes, there are two livable houses on property! One is a 2013 manufactured/mobile home and the other is a 1994 house with metal siding and roof. I am thinking that doing the BRRRR method for this property is the best way to go about it because of the renovations needed and the high rental demand in this area.

I had a foundation guy come out and check out the foundation and he said it was in pretty good condition, but it definitely needs to be leveled. He gave me a rough quote of about $5,000-$10,000 to fix it. The house also needs all new windows (10), new doors, some of the sheetrock replaced, new floors, new water heater, new ac/heater, cabinets, paint and cosmetic work done. All of these things are either very old and will break down soon, are broken, or just need updating, so I might as well get ahead of it and replace it all and raise the value.

My plan for the property would be to fully update and rehab the main metal house and get a renter in the mobile home right away to start paying down that mortgage. I would continue to live in the metal house and house hack it by renting out the other rooms to my current roommates while the updates are being done to the property. This town is a college rodeo town and properties like this with horse stalls and an arena on property are in HOT demand, so I have no worries about vacancy. I understand there will be some, but it has never been without a tenant in either house with all the tenants I've seen come and go in the year and a half I have lived here.

So now here is my problem. I need to be able to get a private or hard money loan for the purchase and rehab of the property. 80%-100% financing is the goal. The owners are saying they want $550,000 which I think is ridiculous for how outdated and how much work needs to be done to the house and the property. I know this isn't totally accurate for appraisal value, but I called and spoke to the tax assessor's office, and they said the current estimated appraisal value of the property is $359,720. I was thinking of offering them $350,000-$370,000 AS-IS, no contingencies, close in 10 days and give them bids and comps to justify my offer or my other idea was to offer them a higher offer price and see if they would be interested in owner financing and I would get a loan for the rehab. I did the bigger pockets rental calculator on the property and filled it out as accurately as possible and it said the property would cash flow around $600.

Let me know what I'm missing and if my strategy seems like it would work or if I'm totally out of the ball park on this one. Please be nice, this is my first time doing real estate investing. I could have it all wrong.

Fort Worth, Texas

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