No Money Down BRRRR Method

[Cody Campbell]

First Deal of 2020:

I live in a small town, a very small town, population 4,000 people and to kick it all off I'm only doing deals in the town center...which is about 1.5 square miles. In 3 years of living here I did 1 door the first year, 2 doors the second, and this year I'm on schedule to do 6 doors. I will eventually write about the first 3 but now onto the first 4 of 2020. 

I drive for dollars because if you take an hour out of your day you could probably hit every street in the area I'm interested in. I saw this property abandoned, and highly neglected. I sent out a letter to the owner to see if I could get some information on the property along with their plans for it. To keep this short I got a hold of the guy and he wanted 30k, I offered 20k and he passed. One month later I made the same offer along with paying the 2019 taxes, hit bit and I bought. After closing I had several contractors look at them and 3 of them told me to get the dozer and push them over. I couldn't do that, I could feel they had something to offer. So I found a crew and we went to work. They ended up being a full-gut down to dirt, everything except the exterior walls and roof came out. After 6 months I ended up with 2 duplexes (2 2bed/2bath and 2 1bed/1bath) 4 units in total. 

The numbers:

Puchase/Taxes/Closing: $22k

Rehab: $260k

Carrying Cost: $18k (6 months of interest and the interest on the Hard money Lend)

Appraisal: $422k

20% Equity left in: $85k

Money Out: $337K (paid 302k of outstanding loans/lends)

Cash in Pocket: $35K

Rent: $3200/mo

I took the cash and used it to put down on another property. So after 6 months and a lot of hard work. I got 4 doors to kick the year off.