All Forum Posts by: Eric Martin

Congrats on your first mid term rental! Both strategies for expanding your MTR portfolio have pros and cons. Diversifying across towns with multiple hospitals offers risk mitigation and a wider range of potential renters, but managing properties in different locations can be logistically challenging. On the other hand, focusing on a single market allows you to become an expert in that area and streamline management, but you may face greater risks if the local market faces a downturn. Ultimately, your decision should be based on your personal preferences, risk tolerance, and how much time and effort you're willing to invest in managing your MTR properties. It may also help to ask yourself "How does each decision align with my overall investment goals?"

Hope this helps and good luck with your MTR expansion!

Just replied to your DM!

 I second what @Greg Parker said! Alabama, (specifically Montgomery) checks all 3 boxes of what you're looking for. I work for a wholesale company that does 10-15 deals/mo in Alabama. I can definitely help you find off-market cash-flowing rentals.

Hey @Roland O'Brien

I work for a real estate wholesaling company in Montgomery, AL. We can definitely find a discounted property to BRRRR. I can also connect you with some solid options for investor-friendly agents, contractors, and anyone else you may need to get started.

Thank you @Nicholas Coulter 

Yes, I will be taking what I learned (and earn) from this deal and doing it again. Rinse and repeat!

@Luka Milicevic Thank you! The kitchen is definitely more open and inviting now - and the best part is no more dated wood paneling. Thanks for the suggestion on landscaping. That aspect was very much an afterthought for me on this renovation but something I can still do to improve curb appeal. 

I'm excited to share the before and after photos of my latest real estate flip! I purchased the property off-market from my employer, Rapid Fire Investments (a regional wholesaling company) at a discounted price of just under $112,000 and put roughly $60,000 into renovations. The final product turned out great and I am now proudly living in my own little slice of paradise.

The best part?

The property appraised for $220,000, and I'll be able to benefit from IRC 121 when it comes time to sell. This allows homeowners to exclude up to $250,000 ($500,000 for married couples filing jointly) of capital gains on the sale of their primary residence. It's a huge win for me and just another reason why I love investing in real estate!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $111,611
Cash invested: $30,000

I'm excited to share the before and after photos of my latest real estate flip! The final product turned out great and I am now proudly living in my own little slice of paradise. How do you think it turned out?

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

I liked this type of deal because of the tax advantages of doing a "live-in" flip.

I'll be able to benefit from IRC 121 when it comes time to sell. This allows homeowners to exclude up to $250,000 ($500,000 for married couples filing jointly) of capital gains on the sale of their primary residence.

I credit learning about this strategy from Craig Curelop's book "The House Hacking Strategy" & Scott Trench's book "Set for Life".

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

I purchased the property off-market from my employer, Rapid Fire Investments (a regional wholesaling company). As an employee, I get first access to our deals and even benefited from an employee discount program, which allowed me to get an even better deal. I bought this one right at 50 cents on the dollar!

How did you financ

e this deal?

I financed this with River Bank & Trust, a local bank. The bank plans to hold the loan in their portfolio, rather than selling it to a secondary market, which gave me some favorable terms. In this case, I borrowed 90% of the purchase price AND repairs which meant I actually walked away from closing with a check from the bank. I still paid out of pocket about $30,000 for half of the renovation cost.

How did you add value to the deal?

I added value by renovating the property.
✅ Added a shower to go from a half bath to a full one.
✅ Replaced cast iron plumbing to PEX
✅ Paint & LVP flooring
✅ Brand new kitchen with granite countertops, shaker cabinets, backsplash, and stainless appliances
✅ Moved the laundry from an exterior mechanical closet to inside the home
✅ Full exterior refresh for curb appeal
✅ Added a Tesla Wall Connector in the carport for at-home charging ⚡️ (ok, this was just for me but is pretty cool)

What was the outcome?

I now have a wonderful home to live in with plenty of created equity via forced appreciation, and minimal paid-in equity. This means I have more cash to put to work elsewhere, not tied up in my home!

Deal Analysis:
Purchase Price: $111,611
Estimated Renovations: $50,000
Loan Amount: ~$145,500

Actual renovations: $60,000
Cash out of pocket: ~$30,000

Estimated (Tax-free) Profit after sale: $35,189*
($220,000*.94-$111,611-$60,000)

CoC Return: 117%*

*ignoring pmt & utilities

Lessons learned? Challenges?

I made a bad call on my first contractor. I was too quick to give him the job because his quote was the cheapest. He ended up prioritizing other projects and left mine sitting for about 2 months. I ended up having to fire him and bring on a new general contractor to finish the project.

In hindsight, I wish I went with the second contractor from the start. He did quality work in a fair amount of time. You get what you pay for!

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

I had a great team on this deal. From the wholesale company that brought me the deal, a great lender, and great contractor (2nd time is the charm).

Without Rapid Fire Investments, I wouldn't have even found the deal so I am especially grateful to them.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $111,611
Cash invested: $30,000

I'm excited to share the before and after photos of my latest real estate flip! The final product turned out great and I am now proudly living in my own little slice of paradise. How do you think it turned out?

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

I liked this type of deal because of the tax advantages of doing a "live-in" flip.

I'll be able to benefit from IRC 121 when it comes time to sell. This allows homeowners to exclude up to $250,000 ($500,000 for married couples filing jointly) of capital gains on the sale of their primary residence.

I credit learning about this strategy from Craig Curelop's book "The House Hacking Strategy" & Scott Trench's book "Set for Life".

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

I purchased the property off-market from my employer, Rapid Fire Investments (a regional wholesaling company). As an employee, I get first access to our deals and even benefited from an employee discount program, which allowed me to get an even better deal. I bought this one right at 50 cents on the dollar!

How did you finance this deal?

I financed this with River Bank & Trust, a local bank. The bank plans to hold the loan in their portfolio, rather than selling it to a secondary market, which gave me some favorable terms. In this case, I borrowed 90% of the purchase price AND repairs which meant I actually walked away from closing with a check from the bank. I still paid out of pocket about $30,000 for half of the renovation cost.

How did you add value to the deal?

I added value by renovating the property.
✅ Added a shower to convert from half bath to a full one.
✅ Replaced cast iron plumbing to PEX
✅ Paint & LVP flooring
✅ Brand new kitchen with granite countertops, shaker cabinets, backsplash, and stainless appliances
✅ Brought the laundry from an exterior mechanical closet to inside the home
✅ Full exterior refresh for curb appeal
✅ Added a Tesla Wall Connector in the carport for at-home charging ⚡️ (ok, this one is just for me but is pretty cool)

What was the outcome?

I now have a wonderful home to live in with plenty of created equity via forced appreciation, and minimal paid-in equity. This means I have more cash to put to work elsewhere, not tied up in my home!

Deal Analysis:
Purchase Price: $111,611
Estimated Renovations: $50,000
Loan Amount: ~$145,500

Actual renovations: $60,000
Cash out of pocket: ~$30,000

Estimated (Tax-free) Profit after sale: $35,189*
($220,000*.94-$111,611-$60,000)

CoC Return: 117%*

*ignoring pmt & utilities

Lessons learned? Challenges?

I made a bad call on my first contractor. I was too quick to give him the job because his quote was the cheapest. He ended up prioritizing other projects and left mine sitting for about 2 months. I ended up having to fire him and bring on a new general contractor to finish the project.

In hindsight, I wish I went with the second contractor from the start. He did quality work in a fair amount of time. You get what you pay for!

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

I had a great team on this deal. From the wholesale company that brought me the deal, a great lender, and great contractor (2nd time is the charm).

Without Rapid Fire Investments, I wouldn't have even found the deal so I am especially grateful to them.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $111,611
Cash invested: $30,000

I'm excited to share the before and after photos of my latest real estate flip! The final product turned out great and I am now proudly living in my own little slice of paradise. How do you think it turned out?

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

I liked this type of deal because of the tax advantages of doing a "live-in" flip.

I'll be able to benefit from IRC 121 when it comes time to sell. This allows homeowners to exclude up to $250,000 ($500,000 for married couples filing jointly) of capital gains on the sale of their primary residence.

I credit learning about this strategy from Craig Curelop's book "The House Hacking Strategy" & Scott Trench's book "Set for Life".

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

I purchased the property off-market from my employer, Rapid Fire Investments (a regional wholesaling company). As an employee, I get first access to our deals and even benefited from an employee discount program, which allowed me to get an even better deal. I bought this one right at 50 cents on the dollar!

How did you finance this deal?

I financed this with River Bank & Trust, a local bank. The bank plans to hold the loan in their portfolio, rather than selling it to a secondary market, which gave me some favorable terms. In this case, I borrowed 90% of the purchase price AND repairs which meant I actually walked away from closing with a check from the bank. I still paid out of pocket about $30,000 for half of the renovation cost.

How did you add value to the deal?

I added value by renovating the property.
✅ Added a shower to convert from half bath to a full one.
✅ Replaced cast iron plumbing to PEX
✅ Paint & LVP flooring
✅ Brand new kitchen with granite countertops, shaker cabinets, backsplash, and stainless appliances
✅ Brought the laundry from an exterior mechanical closet to inside the home
✅ Full exterior refresh for curb appeal
✅ Added a Tesla Wall Connector in the carport for at-home charging ⚡️ (ok, this one is just for me but is pretty cool)

What was the outcome?

I now have a wonderful home to live in with plenty of created equity via forced appreciation, and minimal paid-in equity. This means I have more cash to put to work elsewhere, not tied up in my home!

Deal Analysis:
Purchase Price: $111,611
Estimated Renovations: $50,000
Loan Amount: ~$145,500

Actual renovations: $60,000
Cash out of pocket: ~$30,000

Estimated (Tax-free) Profit after sale: $35,189*
($220,000*.94-$111,611-$60,000)

CoC Return: 117%*

*ignoring pmt & utilities

Lessons learned? Challenges?

I made a bad call on my first contractor. I was too quick to give him the job because his quote was the cheapest. He ended up prioritizing other projects and left mine sitting for about 2 months. I ended up having to fire him and bring on a new general contractor to finish the project.

In hindsight, I wish I went with the second contractor from the start. He did quality work in a fair amount of time. You get what you pay for!

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

I had a great team on this deal. From the wholesale company that brought me the deal, a great lender, and great contractor (2nd time is the charm).

Without Rapid Fire Investments, I wouldn't have even found the deal so I am especially grateful to them.