All Forum Posts by: Grant Waugh

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $120,000
Cash invested: $140,000
Sale price: $400,000

My first BRRRR. Complete renovation down to studs. Now a cash flowing long term rental in an A+ Area. It was tempting to flip and take the cash but I am happy with my decision to hold this property in my portfolio!

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

I wanted to add more properties to my rental portfolio in A and B areas.

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

This was a referral. I locked it up on site with the seller the day I met with him. I knew there was a lot of competition and other interested buyers lined up behind me.

How did you finance this deal?

Hard Money

How did you add value to the deal?

I used a GC to fully renovate the property down to the studs. It has almost every problem you can think of when I first bought it. Here is a quick scope of work:
-New plumbing, electrical, roof, HVAC
-Fixed foundation issues
-Remediated termite damage
-Added a bathroom and bedroom
-Converted carport into a 2 car garage
-New LVP flooring and tile floors in bathrooms
-Full kitchen and bathroom renovation
-High end finishes throughout (to match the area)
-Converted to city water

What was the outcome?

I had an ARV appraisal done and with adding a garage was expected to appraise around 380k. It appraised for 400k and I pulled all of my money out + a little additional cash tax free with a cash out refinance.

Lessons learned? Challenges?

The lessons I have learned on this deal are too long to list, but the biggest takeaway is TAKE ACTION!
I had hoped the project was going to take half as long and that I walked away with more money after the refinance. It was also hard to walk away from the profit potential of a flip but I grew up in the area and I believe this it is going to continue to see great appreciation. I plan on holding onto this cash-flowing rental property for a long time!

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

Lendinghome was the Hard Money lender. I would work with them again. I was the agent and I would work with myself again too :)

Awesome post! This was just the info I was looking for. Thank you

Anyone?

Hey BP,

Does anyone use Investorfuse 3.0? I have read feedback on the original Podio version and the 2.0 version that moved off Podio and it sounds like there were a lot of glitches with both. Has anyone tried the 3.0 platform? Were the glitches fixed and is the platform working well for you?

Question on strategy for buying a duplex. My strategy would be a BRRRR but I don't know how I can make it work.

The asking price is 182,500 and each door will rent for 1000-1100 so decent cash flow. Repairs are estimated at 6k But I’m not sure how to find accurate comps for a duplex that make sense on the asking price. I found a comp within a half mile that sold 2 weeks ago for 135k. My concern is that It would appraise for lower than purchase price when I go to refinance and I wouldn’t be able to pull cash out on the refi to cover the 20% equity. Also concerned that hard money loan wouldn’t cover the purchase since it may be overpriced.

Any ideas on how I could make it work?

Hey BP I know of a few people interested in using their money to fund real estate investments. Assuming I find the right deal and the investor is on board with funding the purchase and rehab costs what documents do I need in order to purchase the investment property? I’m looking for what I need specifically in order to go to closing and make the deal work using OPM.

Thanks!

Hey Jade. Please add me to your buyers list. [email protected] thanks!

@Kenneth Garrett Thanks for the info. How do you pull out the rehab costs? I understand you can pull out the purchase price but not the rehab costs. Won't the lender only give you back the purchase price?

Hey Ned. Thanks for the reply. I’ve heard of the construction loan that you’re referring to but I’m referring to a mortgage using delayed financing. They reference this strategy in BP podcast episode 301.

Hey BP!

Does anyone have experience in using delayed bank financing and rolling the rehab costs into the price of the mortgage with the bank? I've heard this can be achieved by asking the title company to add your contractors invoice cost to the title so it gets added to HUD. You can then disperse the funds through the bank. After the rehab, you are able to pull out the purchase price plus the rehab costs when the delayed financing mortgage kicks in based on the HUD amount. Is this right? Would love some insight if anyone has experience with this strategy. Thanks