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. 

[Cody Campbell]

@Matt McConkey yes, it was crazy...now every time I see one vine on a house I want to go over and rip it off. Nature had taken over and I had to fight to get the house back. Here is the before and with the vines off...we still didn’t get all the little hairs of the vines off so we went with a dark color to hide what we couldn’t get.