Latest Deal

[Bill S.]

So the market is fairly hot here in Colorado and I've been attempting to wholesale with limited results. About 3 months ago I decided to upsize my goals based on input from my BP mastermind group here. I decided to keep my best deals and to ramp up my marketing. I've been very pleased with my results. 

Yesterday I closed on a 4 bd 2 bath home with an oversized awesome 2 car garage in Denver near the Sloans Lake area. It's close to light rail and is in ok condition. It was rehabed about 15 years ago and was done by the children of a long time resident. After he passed the person I bought it from purchased it and used it for a rental. It is way under rented.

The numbers are as follows: Purchase price $210,000. I used a hard money loan so I'm all in at about $220,000. I believe, that based on my analysis of the market, the property would sell for $300,000 once the roof is replaced and some cosmetic work is done on the brick siding (probably about $7K in fixup). My plan is to season the property and do a complete refi to a conventional loan and get my funds back. 

Right now it's rented at $1,350 per month. I think market rent is about $2,000. Today I am offering the current tenant to stay at $1,850 per month. This will cover my interest only payment on my hard money loan. 

Since I have the property well below market, I can always sell as plan B.

It's not a screaming deal by the Bigger Pockets criteria but it's a solid base hit in my market. It doesn't meet the 1% rule but it's pretty close and I really like the area.

I am in negotiations to purchase an 8 unit property. I'm not going to discuss this until I get it nailed down.

I have a strong lead on a 6 unit property. Same story with this deal.

I have a small 1 bd house under contract and I will post that in the market place.

Lesson from all of this, if you are not having success, 10x your goals and adjust your efforts accordingly.