All Forum Posts by: Alex Smith

Best of luck to you!!!!

Yes! It’s amazing! Going to keep analyzing lots of deals and you better believe when I come across another like this we are gonna repeat :D best of luck to you! 

I'm familiar with your area- used to do a lot of traveling up that way for a previous job. Totally different ball game up your way--almost like a different state :P I'm way south- Salem County. 

Knock on wood....but all of my tenants are great! We only have 5 units right now, but in the past 3 years we have had great people. We are thorough in our tenant search and so far that has worked for us. House was cheap for a number reasons and we did an extensive rehab. Tenant pays $1,500 a month as a single mom of 3, so not as poor of a tenant base as you would think. We invest in Salem County, NJ.

Hey Alex! 6 months! Pretty much every lender I've talked to has said 6 months. I talked to one that said they could refinance whenever but our financial strength outside of our rental business wasn't strong enough to refinance with them. Good luck with your BRRRR!!!

Ps- a lot of banks said they could refinance sooner, but they would only allow us to pull out the purchase price, which kind of defeats the purpose, so we are just waiting.

New Jersey!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $25,000
Cash invested: $70,000

Contributors:
Dawn Curry

Bought this one from a wholesaler for $25,000 as a 2 bed/1 bath with an unfinished attached garage area. Spent about $40,000 in rehab and converted it into a 4 bed/1.5 bath that is now rented for $1,500/month. Will be completing a cash out refinance in December to pull out $70,000. After the refinance, it will still cash-flow about $500/month with $0 stuck in the deal. This is our first BRRR and definitely not our last. Our tenant is hoping to buy the property for $140,000 in a few years.

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

My realtor is also a wholesaler and he came across the deal from one of his wholesaler buddies.

How did you finance this deal?

One of our other investment properties caught on fire earlier this year. When rehabbing it, we did all the work ourselves, which left a lot of insurance money leftover. We used the rest of that money plus a little money from our Business Line of Credit to finance this deal.

How did you add value to the deal?

Converted it from a 2 bed/1 bath to a 4 bed/1.5 bath, which allowed us to rent it for $400-$500 more than we could have originally.

What was the outcome?

We have a great tenant-she LOVES the property and takes pride in it. She actually came to help us with finishing touches during the end of the renovation. She is great with painting and re-painted all of the cabinets to match her furniture. She is working towards fixing her credit after her recent divorce and plans to purchase the house for around $140,000 when she can get approved for a mortgage.

@Nicholas Galasso i've heard a lot of different opinions and advice on LLC's. I think realistically, people who have many properties can't put every single property under a different LLC. There are costs associated with maintaining an LLC, such as paying the fee to file each of those taxes separately each year. I guess it would make sense if you had several huge apartment buildings and each was under a different LLC, but to have a single family home on it's own LLC or a duplex even I think is a lot more work. I think when we get to a certain point we may start a different LLC, but with 5 units currently, I think we are okay under one. Do you have separate LLC's for all of your properties? How has that been for you?

@Nicholas Galasso same LLC and now same bank account for the operating account.