All Forum Posts by: David Torres

@Ted Wilcox I invest exclusively in Rio Rancho for now. If you come across any deals that won't work for you in rr or on the west side, send them my way! I also would not mind partnering on deals.

Then we ran in to a cash problem. We wanted to keep buying properties, but had gone through most of our reserves. So we decided to start flipping to build up some additional cash reserves.

First Rehab home

• Purchase Price $71K
• Rehab costs $28K
• Fixed Costs $14.6K
• Sales Price $128K
• Profit $14K

Before

After

Before

After

Before

After

I wanted to post a few pictures, because everybody loves pictures!

Here is my first rental

• Purchase price $85K
• Repairs $4K
• Current Rent $1035 per month.

The second home we bought was Another Rental

• Purchase Price $98K
• Repairs were $3K
• Current Rent is $975 per month.

I just wanted to give a huge thank you to all of the BP contributors for their help in my success. I am lurker that does not post very much. I wanted to share how BP has contributed to my success.

My story begins in 2007, when we bought our first home in Lubbock, TX. The previous tenants were a couple of college guys that trashed the interior. We purchased the home for about $90k, bought $8k in materials (and a lot more sweat equity in to it), and sold it for $113K. During this time, I was working full time, and my wife was attending law school full time. It was hectic, but I learned a tremendous amount about what goes in to rehabbing a home.

Fast forward 6 years, we moved to Rio Rancho, NM (near Albuquerque), my wife and I were both employed in great W2 jobs and we had saved up some extra money. I have always been interested in real estate, and I have an Uncle that owns about 15 SFRs. I contacted him and asked if he would be willing to talk to me about his business. He was more than happy to share his experience. I flew up to Utah to specifically talk about real estate with him. He shared a ton of wisdom with me and has become a mentor that I rely on. I came home and I started looking for homes on the MLS, but was still having trouble finding anything.

What happened next changed my life. I was lurking on BP and noticed some one had referred a Realtor from my area in a thread. The Realtor was also an investor, so he understood what a good deal looks like. He has been extremely patient and helpful. Since our initial meeting 10 months ago, I have closed 4 houses with him.

Two are rentals, both are cash flowing about $200 per month with stable tenants.

Two are flips. I have finished one and sold it (with a nice profit). The other is undergoing rehab currently and should be done within the next 2 weeks.

Thanks again to the BP community, I can say that I could have done it with out all of your help, but it would have been substantially more painful and expensive. Please keep posting your experiences, you just never know whose life you might change for the better!

@Ted Wilcox welcome to BP! Glad you made your way over to the site. Make sure to check out the podcast, it is full of little nuggets. I am local to the area and happy to help out in any way I can. Good luck on your first deal!

I bought these at Home Depot, if memory serves, they were about $30. They are plastic, not wood.

They are a very cheap upgrade and make your bathroom really Stand out.

Another option is Hobby Lobby (if they are in your area). If they don't have any framed mirrors in stock, you can buy a frame, and have a glass company cut a mirror to fit and mount it.

@Mike Cartmell It is actually in the Rio Rancho area. Wish I could find a dozen more!

Here is a quick update on my project in the Albuquerque Metro area. We Closed on this property in late September. Rehab took longer than expected, and it took longer to rent it out than expected.

We decided to rent it out on a short term (6 month) lease due to the time of year that we were renting it out. We found a great tenant, that moved in at the beginning of November. We were able to rent it out for $1075 Per Month.

It worked out well for both parties involved. However They moved out on March 1st. They paid through March, and I was able to get another tenant in on April 1st (No vacancy expense).

I overestimated my rental rates for this particular home. It is in a more blue collar neighborhood, has no garage, and the rooms are smaller than average. So when I went to rent it again, I ended up renting it out again on a 2 year lease for $975. However, actual rent is $1035 (I charge pet rent and trash to the tenant) Here are a few pictures of the "rehab" (mostly paint, appliances, roof fix, etc) and a break down of my final costs.

An important note on my "actual cost". For maintenance/repair, I annualized the cost of repairs. Also, I have down 0% for my vacancies. I know this is on the low side and I fully expect my maintenance cost and vacancy cost to be higher.

I have used these guys a couple of times and they seem to do a pretty good job. Good luck with your purchase!

http://www.hometeam.com/riorancho

505-899-4608

@Michael D'Egidio glad you made it on to the site. There is a ton of great information on the site. Keep coming to the REIA meetings and send any deals you have my way.