All Forum Posts by: Camden Kelly

@Blake Dailey Thank you for the suggestion! I’ll definitely add it to my list.

@Michael Leahy That's an excellent question! While I feel like finding deals, negotiating, and managing a rehab are some of my greatest strengths, I want to learn more about property management. After this BRRRR I felt that getting the right tenant in there was the most important part. I didn't realize how hard it would be to find a tenant that met my standards, even with all of the applications, in a class B/C neighborhood. Patience is key!

@Kevin Pruitt Another excellent point! I would have to go back and look at my CD, but I believe I had around $4,000 in closing costs for title and the appraisal.  Thank you for asking!

Hi @Jay Yoo,

This is an excellent question. As I'm sure investors would answer this differently, here is what I ended up doing to take advantage of historically low rates. After I tapped into the full amount for the HELOC I immediately started the refinance process on my primary residence. I paid a couple points and was able to get a 2.35% interest rate while consolidating the HELOC and my primary mortgage into one lien. Capitalizing on the low interest rates, my monthly payment went from $1,307 a month to $1,550.

After the project was finished I start a cash out refinance, through the same bank, on the rental property.  The monthly costs of this property are about $900 a month (read my response to another BP member above) and it yields $1,200 a month in rents. In turn my results were as follows:

- An increased total amount due on my primary mortgage with an increased monthly payment of about $250 dollars

- $105,000 dollars readily available for my next deal

- $300 dollars in passive income each month

When you break down the numbers, essentially, the passive income from the real estate transaction covers the difference on my mortgage and I also have some money available for my next deal. I'd be happy to talk about this further if you ever want to connect.  There would be too much to detail in a single post. These are just some surface level numbers. 

@RaeShawn Middleton There were some challenges for sure. Some unexpected costs, timeline setbacks, and stress. However, it went as smooth as possible I believe. I fully funded the deal through a HELOC.

@Andrew Galambos Hi! Great questions.  I opted to take out a 15 year mortgage as opposed to a 30 year mortgage.  Between the mortgage payment, taxes, repairs, vacancy, utilities I cover, homeowners, ETC my costs are about $900 a month.  The gross rent is $1,200.  By this metric, it cash flows about $300 dollars a month.  If I had opted for a 30 year mortgage it would have cash flowed around $700 dollars a month. I hope this is helpful!

@Uyen Hoang Hi, Uyen! Personally, I do believe it’s possible to still turn a profit contracting out 100% of the work on a rehab. In fact, the best way to scale would be to operate this way. Two suggestions: 1.) really familiarize yourself with rehab costs. I would start by reading The Book on Estimating Rehab Costs by Jay Scott. 2.) I would see if a contractor would be willing to walk a property you are interested in with you to walk you through what he/she look for. Finally, I’d always collect multiple bids on specific projects. Costs can vary based on multiple different factors so it’s important to collect multiple bids. If you ever have any question I’d be more than happy to help. Feel free to drop me a message whenever!

@Angela Palchowski thank you! If you’re ever interested in connecting let me know! Always happy to meet with another Pittsburgh investor.

@Anthony Angotti Thank you! There’s a ton of good content out there in terms of estimating rehab costs. However, in my opinion, one of the best ways to learn is doing the work yourself and seeing how things can add up. It was absolutely a good learning experience.

@Felipe Stefanoni Thank you! If you have any questions feel free to reach out. I’d be happy to talk about my experience if it helps. Good luck!