Base Hit? BRRRR in process

[Ben Miles]

First, thank you to the BiggerPockets community for all the information offered, resulting in enough reassurance to move forward investing. I found BiggerPockets about a year ago, after attending a local guru 2-hour introduction and realizing that wasn't the right path for me.

The Oregon market is pricey, but our ideal goals are buy and hold rentals. I did some leg work driving for dollars, watching the MLS via Zillow, monitoring Auction.com, and getting educated on BiggerPockets. I found a townhouse condo in Keizer, OR that was on the MLS, but a cash-only purchase. It's an hour away, but we jumped in, using our savings and an equity line of credit.

I certainly took on more than intended and more than I realized. I thought I would have to flip the property, but was able to get enough rent to keep it. It was a great education, but hardly a home run. The kitchen, bathrooms, roofs (townhome and garage), windows, flooring, paint, almost everything is new. I had the HVAC serviced (not replaced) and didn't replace the water heater, because both were in good shape.

Here are the numbers: Purchase with closing costs for $98,000. Remodel and holding costs at $50,000, which I anticipated to be $40k at most. Monthly HOA at $250/mo. Final Rent price: $1,600/mo.

I have not completed the cash out refinance, as I'm waiting for the 6-month mark in a few more weeks, but anticipate PITI to be $1,000/mo. $250/hoa. $160/PM. $80Capex/maint. This leaves just around $100/month cash flow. I'm also self-managing for the time being, which sweetens the deal. I believe ARV will be around $198,000.

If I can finance 75%, that leaves very little of my money in the property. At 70%, that would leave about $10,000, which should be 13% Cash on Cash return annually.

I haven't made many posts here, but let me know what you think. Now onto the Refinance and Repeat.

Good luck to all of you in your ventures.

[John Leavelle]

Howdy @Ben Miles

Congratulations on the first one. I stay away from condos and anything having Cash Flow killings HOA fees. Not to say you can in your area. If you get most of your money back and end up with a positive cash flow property, then, consider it a successful deal. I'm sure you learned a lot and will be able to improve on the next one.