All Forum Posts by: John G.

I have been absent from the biggerpockets website for a while...but just logged back in and came across this post.  I currently live/ invest in the Brainerd lakes area and really enjoy it here.  I have 22 rentals and have also flipped homes as well.  I'm moving towards buying larger apartments and branching out more.  I have my realtors license and have construction trades background.  Feel free to reach out to me I'd be happy to help.

1 yr later how are your single family rentals treating you in Brainerd?  I am an investor in Brainerd as well.

@Zach Ward by contract I meant contract for deed.

5yr balloon at 5.5%. So I don't need to deal with a bank. She doesn't want to pay taxes on a lump sum and would rather hold a contract. That and I wouldn't be able to buy 5 SFH at one time normally. It will average 40-50k each house and average 700+ each in rents.. Rehab costs will be prob 5k each house I'm guessing. Which she is going to allow that to be my DP. So approx 25k will buy me 5 houses. They are all currently rented. She gave me a list of 60 and we have been doing drive-buys on them. For now she only wants to sell the homes that she has fully depreciated. But all said and done it Almost seems to good to be true doesn't it?

@Zach Wardforgot to add this to my reply above

So I have two possible deals in front of me right now very nice duplex in a neighborhood for a really really good price but I would have to finance it at 20% down which would come from the HELOC

 The other deal is a lady who has 60 properties and I finally have her to the point where she will sell me for five houses on a contract In B to C neighborhood.    For my down payment I'm just putting the roofs or windows were ever needed  and rehabbing them if needed 

 Is that an example of what you mean by other peoples money?

I'm a little hesitant on the deal because I'm unfamiliar with multiple houses on one contract for deed and the houses are not as nice as the duplex but it seems like it makes more sense because it's less cash out of my pocket by far.

Or maybe I'll just do both deals since they're both good opportunities

On the contract deal the cash on cash is off the charts and on the duplex the cash on cash is around 11.5% which is cutting it pretty close but it's in a neighborhood so you're not going to get as good of a cash on cash I feel.

 What are your thoughts ?

How did you buy your houses with no money out of pocket?

congrats!

Be careful it is very addicting.  I started with a duplex flip....changed my mind and rented it.  That was 5 years ago now I'm up to 17 rentals.  I hoping for 5-6 more this years.  I love you have ambitious goals, that's what it takes.  Good luck my friend...you will succeed if you believe!

@Account Closed I fell off the planet and got crazy into the real estate world. I have not logged on in it looks like a year. Sorry I didn't respond to you. I guess this reply ends up being an update. To answer your question yes the house rented for 1650 when I bought it. I did a few minor things and since have increased rents and am getting $1850 in rents out of the house. It ended up being one of the better investments I have made. Looking back I don't even know why I questioned it. Because now I can't a deal even close to that. Since then I have bough a SFH and a fourplex....I'm hoping to buy 4 this year but they are getting hard to find.

What are your goals looking like for 2017

Great advice @Zach Ward thank you! Since my original post I have been snowballing still on my highest interest rate and used my HELOC to purchase 3 more houses (8Units total). The HELOC is almost paid back from snowballing now I'm just going to use the snowball to get a cash reserve so I don't need to use the HELOC. The HELOC is nice to know its there to use as a last resort if there is a killer deal. Have you found any more properties?

Has anyone else bought a package of properties on contract?  How did it work out?

I agree @Eugene Kemp Zillow is not very dependable in any way really.  Your realtor will be able to give you the best advice on where you will be at for value.