I joined bigger pockets on June 20th, 2019. I started listening to the podcast every day more than I listen to music. I bought my first home(2 unit) in 2018 January and because I listened to Dave Ramson on Youtube I decided to pay on time so I put an additional $12,000 yearly. The testimonies shared on Biggerpocket gave me so much financial education that I decided to go the same route. Long story short, I got an agent who seems smart and understands the kind of deals I was looking for. I did at least 2-3 viewing every week and also drove for dollars in between work and breaks. I almost bought a house, we were on it for too long because they will not come down to the number that makes sense. I eventually lost the deal to some cash buyers. I almost gave up but listening to podcasts got me going until I found another sweet deal.
I found a house(2 unit) that was listed for $259k, I viewed it and got three contractors to give me the estimated cost to upgrade from the 1955 year it was built. The contractor submitted offers with the lowest of $45k to 100k renovation cost. The information I had helped me to submit an offer for $180k with the renovation cost of 100k knowing I would not spend more than $50k. They came back at $240k, this went on for a while that I almost gave up on the property. Luckily for me, the next house to it was listed and I went to view it with my agent. The moment they got information that I went to look at the next building, they asked me to submit an offer for $230k which was the cap of my number. I went in again with $220k and they accepted $225 which is fine for me.
The property is $225, renovation is $45k and $10k for miscellaneous. The total is $280k, the ARV is $285k which is a good deal been my first BRRRR. If I have made a mistake it will be a learning process according to Brandon Turner. I initially spoke with me lender about refinancing, he said it is doable at 80%(my ARV was calculated at 75%). This house will rent for $2,500 monthly, it is close to the university, the monthly expense is less than $1,500.
That said, I am just happy to be part of Biggerpockets and to be able to do this during the 90 days challenge. I am still learning and I hope to get all the support I can get in St. John's Newfoundland, Canada.
