A day in the life 6-26-15

Today, I thought was going to be pretty uneventful, but it turned out to be anything but.  This morning was slow, as I was watching my son, but I managed to make some more calls on the MHP search.  I did find one owner who said she was looking to sell in a couple years.  I am thinking of suggesting a Lease option or owner finance of some sort.  This way she still gets paid for the next 2 years and gets a big payout later.  It is worth a shot.

My partner for the TKM (turn key Michigan) called me at 1:30pm today to ask if I was aware of the closing at 3:00pm today.  Somehow I was left out of the loop.  So I had to change the boy, feed him, get the diaper bag packed, unhook the trailer from the truck, get gas, get the cashiers check from the bank, and drive 35 min to the closing, all in 1.5 hrs.  I made it 5 min late.

Anyway, for those who don't remember, I am the cash partner supplying the purchase price, and rehab/holding costs.  There will be a credit partner who will do a cash out refi as soon as it is rented.  I should get 100% of my money back at the refi.  I will then have a 15% share in the company.  Here is how the numbers worked out.

Purchase:     $41,000

Rehab:         $14,000

Holding:        $2500 (this is very conservative)

My total money in:  $67,653.91

Monthly rent   $900-$1100

NOI estimated at $300/month

After the refinance I will have 15% so my monthly cash flow will be aprox. $45/month, and I will have my money back to do it all over with again.  If it works out well, I will just parlay the money over as many times as I can.

I originally chose to do this partnership for the education.  I want to learn the ins and outs of the buy and hold.  So I will follow up more with these numbers as we go.  Hopefully I can do a buy and hold of my own soon with the Brrrrr strategy.

As for the Willow Flip, I met with the contractor at the house, and gave him the first payment for the work.  The entire job will be $55,000, so I gave him $20,000.  There will be an additional $20,000 due when all of the ruff work is done.  (electrical, plumbing, hvac etc).  Then the final $15,000 due at completion. 

Also for the flip, I had a few people call me back on the septic, and I sent them the permit for it.  The township said they will simply renew the old permit on file.  I still don't have solid estimate on the septic cost, so I am a bit worried about that.  

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