First Renovation and Another Under Contract!

[Cassidy Burns]

Hi BP,

I wanted to share my current situation. I have owned 1 3bed/3bath condo unit in Washington DC for around a year now, has been great so far. Rented it out for 6 months until my lease ran out, moved into the unit with a roommate, paying 2/3 of the PITI, and now currently exploring AirBnB for the 3rd bedroom.

I have been hard at work the past 3 months, closing on my first Duplex in my hometown Covington, VA.

-Purchase Price: $30,000.  Appraised at $43,000

-Two 2bed/1bath units.  1 completely renovated, 1 needing some TLC.

-Rented the first renovated unit out for $445.  

-Starting basic renovations on second unit.  Basic renovation, paint, replacing floors in living area and bathrooms, painting cabinets, decks, garage.  Going to cost around $5500  Still nervous and overwhelmed since I am managing contractors out of state

-That unit already has a lease signed and ready to go for April 1st for $500/month.

-Total Rent= $945.  

-Total Positive Cash Flow= $450/month.  Possibly a little more but going to make sure I build up a nice reserve for the "just in case" scenario.  

-Planning on refi in 8 months, ARV is Low End= $55,000. High End= $70,000.

ALSO, another single family home under contract in the same town. Covington, VA.

-Closing April 15

-Rent Ready, just need to get appliances.

-Purchase Price: $30,300

-Projected Rent: $625

-Projected Cash Flow: $278/month

-Zero $$$ down.  Investor loaned entire down payment and any rehabs that may need to be done ($10,000) at 5% interest. 

-Bringing Cash flow to: $225/month after interest payment

-Plan on Refi for appraised value of $50,000.  Pulling money out, paying back investor, and still cash flowing $200+/month with zero money down!

Thanks for all the help BP!  Many more to come.