Just nailed the closing of my second property with $0 out of pocket!

[Justin C.]

Over the years, I have built a great relationship with my attorney.  He is my fathers attorney (by coincidence believe it or not), my mentors attorney, and has closed on a personal property of mine as well as my 1st investment property.  Over the years, I have done some home audio/video work for him as well as sold his BMW that he couldnt sell conventionally through a car-lot his friend owned.  This was imperative to building my credibility.  He has lent my mentor money for his investments and offered to review my first investment if I wanted too at the time.  I paid for the first one with cash as well as financed the renovations so thought I should keep this all mine while I could - this should be ready to rent within 2 weeks or so.  When this new house became available, my mentor and I walked through and immediately went to him to discuss financing.  We agreed per the numbers below in exchange for a lien on both properties.

Here are the numbers for this SFH:

$36,000 Purchase / $80,000 ARV

$3000 closing costs

$4000 holding costs for 5 months minimum

$55,000 Loan at 8.5% interest only with 0 points

Approx. $10-15k in renovations needed.  I have a 0% credit card till October of 2015 which will give me time to refinance to a 20yr conventional.

Here is the rental worksheet:

$850 per month income

-58.33 Insurance

-208.00 taxes

-280.00 loan once refinanced

-85.00 vacancy

-85.00 maintenance

$133 cash flow per month

Very cool!  Thanks for all the support BP!