Final Update Before Close

Yesterday was a busy day. Not busy offshore. We are still sitting here doing absolutely nothing, but busy with the investment property. I posted on my Facebook that I was looking for contractors for a rehab and got a decent response. I collected all the contact information and will start setting up walk throughs while I'm home. I want to get at least 3 estimates done in all areas; general, electric, plumbing and HVAC. My mentor also responded asking me to put together a list of everything that needs to be done on the house. He's been a real estate investor for 20 years so I'm sure he knows people. 

After putting the list together and going back over the house rehab list, I got nervous. I started stressing that I haven't budgeted correctly or I missed something. I haven't actually seen the house, so it may be the case. I did over estimate on many things and built in a $5000 buffer, so I'm hopeful I'm good. I'll know in a month.

My other stress is not being there during the rehab. If things start to become a hassle or contractors become a problem, I will shut everything down and wait until my busy period is over. There won't be much work after March this year and the holding costs on a house I paid all cash for is minimal. The insurance just came back at $77.00 a month. That's a builder's risk policy. The deductible is $5000 and it covers theft. So with taxes, my monthly holding cost on the house will come to under $200 a month.

I sent an email to the title company yesterday asking for an update on the title search and survey. Everything came back good and the closing is set for January 20th at 10am. I sent the owner an email to let him know the date and time. I understand his hesitation to give me the key before closing. After all, a guy he's never met in person, who claims to be offshore and wants to buy his house, but wants the key so he can start getting estimates done? I would have been hesitant also, but I could have gotten so much done over the last couple weeks if he had just let me have access to the house.

I've been a lot more active in the forums and have met a bunch of great investors. At first I thought I wouldn't have much to offer because how new I am, but the more and more I read the forums and contribute, the more I realize I do know things. I also realized that I probably started off focusing on the hardest part of REI. I think the hardest because BRRRR is actually a combination of 3 different aspects of investing:

Wholesaler: Not because you get homes under contract and assign the contract to someone else, but you have to find deals at wholesale prices so you can flip them yourself.

Flipper: Once you have a house, you have to rehab the house and make sure you follow the 70% rule. You want to keep your rehab costs in line so that you have instant equity. It's important when you refinance you home. You want to be able to use that equity for your next deal.

Landlord: Once the rehab is done, you become a landlord.

I might write some random posts over the next week, but the next post about the investment property will be on the 20th. CLOSING DATE!