All Forum Posts by: Bryston Wisekal

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $83,000
Cash invested: $156,000

Traditional BRRRR
Purchased for $83k, spent $64k on the rehab, $5k in closing costs, all in for $153k and appraisal came back at $212k but took a loan at 67% LTV. Rents for $1250, cash flow is thin but everything has been renovated so capex and repairs should be minimal.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $78,000

BRRRR deal.
Acquired for $78k, spent $21k on rehab, $6 on closing costs, appraisal at $125k. Left about $12k in the deal and now rents for $1099 with PTI under $600 month at 75% LTV.

Its unfortunate that we have politicians across the country have made it so important where you live and invest. Those of us here in the free states (south east and perhaps some of the midwest?) where are politicians don't despise us, have it very easy. I feel for those who live in those states like CA, OR, NY, etc. where it may have once been a great place to live and invest. They however have a choice everyday to continue to live and invest in a state whose outright goal is seemingly to punish investors or they can make the changes necessary to invest in markets where politicians aren't out to get you. Yes, those are hard and costly choices, but they are choices nonetheless.

@Calvin T.

He’s likely making a minimal AM fee, I’m sure 100bps on committee equity and I’d guess he’s just banking on the carry/promote when the asset sells. It’s just the typical Private equity/syndicator model.

Thanks for all the insight everyone! Definitely don't want to be last to the party. Looks like I have some more research to do. Thanks again!

I am on the hunt for the next deal but am looking for a market outside my backyard. I think the Charleston market is getting over priced relative to where we were before 2008 so I figure there should be some better markets out there. I'm looking for areas with solid schools, decent population and job growth, with homes in $125k-$150k range and rents in 1% range, preferably in the south or just a place with minimal snow/ice. I've begun to look at Memphis, Oklahoma City and Kansas City but continue to find a lot of mixed reviews from people who live in each place. Not sure if anyone may have some suggestions.

Hello all,

I am looking for any recommendations for a solid property manager for single family homes for the greater Charleston area. 

Thanks!

I would be interested in this as well.

Hi all, I am in search of a realtor who is familiar with small multi-family (less than 10 units) assets in the South Florida area, primarily broward county.

I am an out of state investor with partners on the ground and am in need of a realtor who preferably specializes in multi-family investing while also understanding the retail market as I'd like to work with one realtor for acquisitions and dispositions.

Just as a final update on this asset. I ended up doing about $1300 in maintenance (A/C tune up/maintenance, a few plumbing repairs, and some dry wall repair). After one buyer fell through, we ended up with a full price offer from a cash investor which we closed with last month. If anyone is interested in the numbers on this deal here they are:

Purchased asset for $82,500 w/ 20% down and with a solid tenant in place for $850/month in summer of 2015

Had about $3k in maintenance/capex in 2016 (insulation in the ceiling that was never done and a leaking shower pan that resulted in re-tiling the master bath and shower) This was all paid for by reserve savings from the rent.

Listed in February of 2017 for $119k with approximately $12k in closing costs. After taxes we will about double our $20k we were all in for. The entire investment worked out to a 51.4% IRR or a 2.0x multiple. Not terrible at all but I felt as though we got lucky.

Lessons learned:

1. I got lucky, typically, homes should not appreciate 50% just under two years.

2. Its tough to make money on one single family rental under $1k/month around the 1% rule. After capex, maintenance savings, property management fees, mortgage, taxes, insurance, we were left with about $150/month. If you can scale it quickly, perhaps it may work better but $150 of buffer between profit and loss doesn't leave a lot of room for a $4k A/C replacement right after you have had another major expense. The $3k we spent in 2016 wiped out the reserves I had set aside for this specific property. Again, we were lucky the we could get out before another major expense showed up before we could replenish those capex and maintenance reserves.

3. Real Estate investing is beautiful thing. Being able to take advantage of tax laws is immensely advantageous. Make sure you have a solid accountant who knows real estate. We effectively took a tax loss every year while making "cash profits." This doesn't include capital gains taxes of course.

Now onto the next deal!