Coming up on 2 years since I found BP and working on #25...

[Josh Emory]

Well, I'm still a sleeper here.  Don't post often, but continue to absorb knowledge from all the great podcasts and people I have met through BP.  You can see my first story her, from a few months ago.  

https://www.biggerpockets.com/forums/223/topics/24...

As excited as I was then, I'm even more fired up now as I went under contract on Friday on a 16 plex. Making doors 9-25 in Louisiana.  

So I left you at Deal #7 (duplex doors #7 & #8).  I got lots of congratulations for my earlier story and how well my deals had worked out.  Well, this one has become the learning experience.  I did get the deal and close on it.   What I didn't do was get all my ducks in a row on the rehab.  Got busted pulling permits for one part of the job without having the general permit required by the city.  Red tag in hand, everything was halted.  Finding a contractor to move in mid job has been a challenge and so far I have lost about 3 weeks in the rehab process.  That said, it looks like things are going to get rolling again this week, and fingers crossed I will be ready to list for rental by April 1.

Deal #8.  My $8,000 house.  Well, at least that is what I called it at first.  Now, I'm referring to it as my $40,000 house as this one is a flip and I'm looking at netting about $40,000 on it.  So how did I end up with an $8,000 house?  When I closed on deal #6 (back in August) the selling agent was represented BIG BANK Foreclosure houses in the area and he mentioned it to my agent (connection made through BP).  It had been on the market for almost 2 years (originally listed around $90,000) and he said he wasn't allowed to advertise it below $49,000 but they would consider any offer.  We took a look the next week.  Overall the house was pretty nice.  1950s  house, hardwood floors had been refinished, new cabinets had been installed in kitchen, nice front porch had been added.  The master bath had been gutted, and not finished and their was quite a bit of trim work replaced in the house that had not been painted.  So a little work was needed, but from a rental standpoint I probably could have in rent ready for less than $5,000.  Down side it was in a little podunk town about 25 minutes from my house. that really didn't command much rent.  I threw around the idea of making a $20,000ish offer but decided to pass.  Well, I was driving back through the town in late December and wondered if it was still available.  My buddy said it was, so I told him to just offer $8,000. Maybe if I was lucky they would throw back some counter and I could get it around 15k-20k.  Was told an investment group was working on a package purchase from BIG BANK and they wouldn't consider any offers while that was going on.  No problem, but then in late January I got a call saying it was available if  I would like to make offer.  Made an $8,000 offer, and they accepted with no negotiation.   Again, I really wasn't sure I wanted a rental in this area, so as soon as I was under contract I started trying to find anyone who was looking for a house in the country.  A friend in the mortgage business had a buyer, and the same day I closed we signed a contract for him to purchase at $70,000.  I've got about $14,000 in work to do to get things we agreed upon complete, and I am paying all closing costs.  But if all works out, should close on the sale within the next 45 days.  

Deal #9 (Doors 9-25)  Super pumped to be on my way to my first multi family.  16 plex  all 2/1s renting for $500 each.  15 of 16 are occupied with the current owners using #16 for an office. I do think rents are a little low and area probably justifies $575-$600.   Older couple owned them for 20+ years now and had been doing 100% of the work themselves and ready to get out.  Started listing around $900,000 (way to high) almost a year ago, with a Realtor I can only guess did not have good investor contacts.  Anyways price has been dropped over and over and was down to $680,000. In steps another BP member (see deal #4), wholesaler and now licensed agent also.  She secured an agreement to advertise the property at $580,000 for 30 days and got it out to her list.  I quickly looked at the property and gave her a call.  Told her I could get the 80% financing, but did not have the funds for down payment, and asked if the sellers would consider carrying back the down payment.  She said they would consider it and I made an offer within 12 hours of her email going out for $550,000.  $400,000 now and they would carry the down payment of $150,000 due in 5 years.  We are under contract now and I am working on my due diligence.  

My big take of the last few months has been to make offers. The ridiculous price on Deal #8 and the creative financing on deal #9 are both things i thought wouldn't really happen, but they are the same types of stories I have heard others share on BP and I figured why not.  "It never hurts to ask"  Has really held true.