All Forum Posts by: Constance Kawa-Small

Hi Nico,

I’m not as active replying on the forums, but your post totally got my attention!

1. BIG CONGRATS to you for engaging in learning about RE at such a young age! That alone already tells a lot about your drive and maturity. 
2. You do have time at your side unlike so many of us who have started investing later on. Mistakes will happen, might as well get them out of the way and learn while there’s not “as” much at sake.

3. It’s great you’re reading a lot about to go or not to go to college. But I hope you understand this is solely YOUR decision. And as Brandon says, if you’re afraid or in doubt, write it down, crunch numbers, analyze prospects and make an educated, rational decision. Also keep in mind, it’s ok to change your mind later on too!!

4. Regardless if you go to college or not, since you know RE is your passion, you have a few options to get your foot wet in the RE world to lay a good foundation: look for a job or internship within the industry! Heck, you might even ask to shadow your parents and their 2 rentals if you don’t already! Are you attracted to flips and rehabs? You might want to get a job tagging along construction. Do you like buy and holds better? Look for opportunities with property management companies. Do you like the wholesaler quick turnaround style? You could offer to drive for dollars or do other local leg work to bring deals to investors that can’t or won’t. David Greene emphasizes this a lot, the best opportunities lay in identifying problems that others have but you might be able to solve when they can’t or won’t. 

Much success to you!

Great advice above. I haven't yet targeted specific commuting professionals, but heard a podcast where the investor advertised offering tech packages to attract young professionals: usb outlets, smart doorbell, lighting and thermostat. Good luck!

Hi @Aubrey Maldonado! 

Welcome to the community. Well, you've been incognito since September huh? ;-)

I'd love to connect, brainstorm and chat BRRRR. I'm also an active duty spouse, I also joined BP in September and I'm now investing in small multis with the BRRRR strategy. I've added 7 doors since then, one of the properties through BRRRR. It was so exciting - I actually get my money back next week! - that it's all I want to do moving forward :-)

Are you house hacking now? NC is a good market for that with the VA.

Let's chat more!

OMG Mindy, I ordered some laminate online - of course I went for price, not realizing they were stick on - and as my guy is laying them down and half way through, he called saying that it wasn’t sticking to the subfloor. Had to pulled it all off, return and get the click on kind. Just a time and labor set back. 

@Joe Hammel yes! But I must confess, after getting such good numbers with this one, I certainly have higher expectations for myself in achieving similar numbers. Not sure how that will go. 

@Max Feinberg

Investment Info:

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

Purchase price: $112,000
Cash invested: $37,000

For those who need some encouragement out there, here's a deal from the MLS that gives me an AMAZING 28% COC!
Fourplex in the suburbs of Pittsburgh, each 1bed/1bath.

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

The possibility of reaching my financial freedom through less deals. I'm focusing on small multis (2-4) which allows me to purchase more doors with one transaction, since I am financing deals with cash and traditional loans. The ability of managing rentals and projects with one location is also a plus for buying small multis being an out of state investor.

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

Found on the MLS and negotiated through my real estate agent. Comps were very limited, so we just put an offer the very next day of hitting the MLS for slightly less than asking price ($7K less). Also negotiated upon receipt of inspection report, getting $2K credit from seller, totaling a purchase price of $112K.

How did you finance this deal?

30 year fixed traditional, 25% down

How did you add value to the deal?

Rehabbed 2 vacant units (paint, floor, kitchen cabinets redo and bath)
2 more still to be rehabbed once we have tenant's turnover and exterior paint in the near future

What was the outcome?

All In $37,000 (down payment + closing + rehab)
Yearly Cash Flow $10,392
Average of $215 per month per door
An AMAZING COC Return 28%

Lessons learned? Challenges?

Main Lessons:
1. Overestimate even your conservative rehab costs!
2. Plan for the possibility of rehab to go over the projected completion time
3. Make sure to buy the right flooring (duh moment, don't even ask!)

Challenges still facing:
Electrical panels and HVAC systems are not split, so I pay for utilities and build that cost on my rents. I still get my AMAZING 28% COC, but would like to split all utilities to transfer those expenses to tenants.

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

Yes, my Real Estate Agent Max Feinberg is outstanding and we've developed a great partnership that hopefully will last for many more deals to come!

@Paul S. I like Pittsburgh, I'll send you a PM not to take it off-topic. ;-)

@Drew Sygit Excellent response! I believe in Detroit, and as an OOS the biggest challenge for me thus far is definitely developing a solid, reliable and trustworthy local team. 

Great job! How many BRRRRs have you done thus far? 
Did you wait the typical 6 month seasoning for the cash out?
I'm currently at the refinance part of my first BRRRR but I'm having trouble finding lenders that will do delayed financing and waive the seasoning. Please PM me if you have one!