All Forum Posts by: Adri Jusczak

Hi John, 

The hardest part is pulling the trigger on the right deal. Have you considered the BRRRR strategy? In your case, I would recommend finding a deal that would work as a flip but in case it doesn't sell, you can refi and rent it out for cash flow. In the areas you are looking, do you see 100 year old houses that are in good condition and selling? I would do your research on that age range- sale price, condition, days on market, etc. to help with your numbers. Best of luck to you!

Hey Tyler, 

The cashflow is great, but the CoC return is a little low for my preference. I typically shoot for 10-12% CoC return. Is there a chance you can get the price down or get 20% down instead of 25%?

Hey Nathan, 

Congrats on getting started! The hardest part for me was pulling the trigger. Trust your numbers, write them up as worst case scenario and if they work, put an offer in. You can try expanding out to more rural areas but know the rent might not be as high as a larger city. When looking in the rural areas, look at Facebook marketplace, Zillow, and Craigslist for rentals. If there are tons of options for a small town, skip that area. If there are a few and they seem to go quick, that's a great sign. I currently invest in a town that's around 12,000 people, I've always had an easy time finding renters. Best of luck! 

Hi Christian, 

You're right, there are a ton of scammers out there! I have a few properties under my belt but I'm no guru yet. The only learning investments I've made so far would be a pro membership on Biggerpockets and several books. I'd be happy to walk you through my journey and help how I can. My long-term goal is to become a real estate coach, but for now I'm just sharing my knowledge to newbies like I once was not that long ago. Send me a message and let's set up a phone call! 

Hi Lauren, 

I would lookout for one of the webinars biggerpockets hosts. They usually breakdown the numbers/show you how to use their calculator. I use the calculators on this site for all of my calculations. Typically, realtors get around 6% of the sale price on a home. That might be split between the buying/selling agent and that percentage might change by a point or two. If you are buying, you don't have to worry about what the realtor is making, the seller pays the agents. Feel free to message me if you have any other questions. Best of luck! 

Investment Info:

Single-family residence private money loan investment.

Purchase price: $45,000
Cash invested: $30,000

This has been my biggest rehab yet! Ran into a few hiccups I wasn't accounting for - repainted the exterior and had the furnace/water heater replaced. Those cut into my rehab budget but will pay off down the road. The rental demand went up so much over the rehab period that I was able to get an extra $100 per month for rent! CoC return of 79%, purchase cap 20%, and a monthly cashflow of $318.

What made you interested in investing in this type of deal?

The initial price of the home was hard to pass up. I know the market well and knew it would cashflow.

How did you find this deal and how did you negotiate it?

It was on the MLS, originally listed for 55k, but was able to negotiate it down after the inspection due to mold.

How did you finance this deal?

I paid cash for the property and used a private money lender to fund the rehab.

How did you add value to the deal?

It needed a new roof, exterior paint, new furnace/water heater, kitchen remodel, switch from fuses to breaker box, exhaust fan in the bathroom, mold removed, new paint throughout.

What was the outcome?

The house appraised for 87k. Purchase cap 20%, CoC 79%, cash flow $318. Not as good as I had originally planned, but still happy with it!

Lessons learned? Challenges?

They previous owner left a bunch of stuff in the basement and garage. That was a major hiccup on my rehab timeline since I had to take a few hours of my limited time to get it out and take it to the dump. As I live in CA and this house is in MN, it was difficult to make sure all was lined up with the short period of time I was there working on it.

Hi Jon, 

I've had success on Minnesota Contractors Facebook group! 

 Hi Leandro, 

I have been self managing for now, but I plan on getting a management company once I have a few more doors under my belt. Right now I have 3 rentals and a 4th that will be ready for rent by the end of July. Between the 3, I cashflow just over $1,000. I'll roughly need about 30 more doors to hit my goal of 10K cashflow. The stretch goal is to buy two more this year, and then double every year until I hit my goal. That would mean purchasing 8 doors next year, I'm looking into MFH which makes it a possibility and with experience, you gain trust of friends/family members as private money lenders. I currently have built up a list of about 6 people who are willing to invest 20-50K each in my projects. I typically hold the money for 4-6 months and use the funds for rehab, then pay the PML 10% at the end. EG- Current PML deal is 25K for 4 months, I'll pay the PML $27,500 at the end of 4 months. 

Hi Leandro, 

I haven't retired from my W2 yet, but I'm on my way to retirement. My cashflow is roughly $250 per door after setting aside money for repairs. My cashflow not setting aside for repairs is roughly $400 per door. These homes are in my LLC, once I hit my goal of $10,000 in cashflow monthly, I'm planning on paying myself through my LLC an "owner's draw". I'll then take half of the cash flow towards the owner's draw and will continue to give myself a raise as I buy more rentals.

Hi All, 

I have the opportunity to develop land with the city/school in a town in MN. There is a serious housing need in the area and finding renters/buyers wouldn't be a problem. I'm thinking of building townhomes on the 17 acre parcel and a mix of SFH/MFH after on a 34 acre parcel next to it. What kind of structure is needed for the HOA on the townhomes? I'm thinking of selling half the townhomes to pull my money out and keep the rest as rentals for the time being. Any tips/suggestions on development would be greatly appreciated!