All Forum Posts by: Cassy T.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $160,000
Cash invested: $245,000
Sale price: $475,000

Purchased a single family home and converted it into 3 apartments. Purchased for $160,000. Put $85,000 into renovations for $245,000 all cash in. Cash-out refinance appraised at $475,000. A pay-out of $85,000. Currently renting all 3 units I cash flow almost $2000/mo. On to the next BRRRR.

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

I was looking for a hack of some type. In my market there were not small multi-families available. So instead I bought a large split foyer to convert to a duplex and was able to make it a tri-plex.

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

I worked with a real estate agent to find a home in need of TLC. It had just had a deal fall though due to them not being able to obtain financing due to the issues of the home. I offered cash and they took it.

How did you finance this deal?

I paid cash to purchase, cash to renovate and cash-out refinanced on a commerical loan at 70% LTV.

How did you add value to the deal?

I added a bathroom. I put egress windows in the two basement bedrooms and added 2 kitchens, to make a 4 bedroom 3 bath home into a 6 bedroom 4 bathroom home, that was broke up onto 3 apartments.

What was the outcome?

70% LTV paid me $85,000 above my investment and I am cash flowing almost $2000/mo. on rents.

Lessons learned? Challenges?

Screen your contractors better. I had a plumber take me for around $1200. A deck builder build a deck I will have to rebuild soon and a roofer cost me $7000 to rip his new roof off to replace with right away since he installed so badly.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with a real estate agent, lender, lawyer and CPA to keep things going in my business.

Colorado is expensive. I am in my 2nd fix and flip (just over 2 years living in it) and plan to sell in June and move to Knoxville. I just cannot handle the initial buy in value here. A run down, gut job house on my street went for $340k the other day.  I will definitely be looking into the house hack method as I move to TN and get started there. Good luck here. You may have a good realtor, but if not I know a great one. He is also an investor and a great resource!

Investment Info:

Single-family residence fix & flip investment in Greeley.

Purchase price: $230,000
Cash invested: $15,800

Purchased a SFH that was previously a rental and in need of cosmetic fixes through-out the home. It was in a good neighborhood and had a 2nd garage, additional parking and a double lot, unlike most its neighbors.

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

The housing market is very expensive in Colorado. I was moving from a depressed market in WY and this allowed me to get more house, plus make a nice profit. My realtor was a big part of it.

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

I met a realtor when I moved to the Greeley area who managed 80+ rentals and knew this one was going to be liquidated. It's who you know!

How did you finance this deal?

Traditional loan. This was my primary residence for just over 2 years to miss all capital gain taxes.

How did you add value to the deal?

A large remodel on the kitchen was performed. It was very outdated. I added a large granite island, new flooring appliances, etc. I updated the flooring through out the house, painted and updated all fixtures in the bathrooms.

What was the outcome?

Purchased for $230k. Sold for $310. Input $15,800 into rehab. After realtor fees and any other expenses I net profit $51,800 on my first fix and flip. I rolled that into my next investment flip.

Lessons learned? Challenges?

Laminate flooring does not hold up and is not worth it. I will not install that again.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Seth Bunting at One-Way Realty in Greeley, CO. He is amazing!

Hi. New to REI. Currently living in Greeley, CO. I have had two properties here that I bought with the intent to rehab and sell in 2 years. Just finishing my 2nd one. They have done well for me. The market is high priced here and moves quick. Not a bad thing. However, as a "newby", I cannot stomach buying a gut job rehab for $300+. So I am moving to Knoxville in June to begin REI there! So excited!