All Forum Posts by: John Silva

Thank you Sam. 

My first flip is almost completed. I have a few options, let me lay down the ground work. I have a investor to payoff and all my money is tied into the project. Here we go. 1) Sell outright and pay my investor off , profit $15k. 2) I and two other investors buy the house , profit $5k. That's were the BRRRR comes in. Since my money is tied into the house. My two investors buy the house ( my company name on it as well ) I have a LLC. Fair purchase price & under the appraised amount to add to the equity ( down payment + good price = more equity ). Since my money is tied into the project I can only contribute $10k towards the purchase price. My monies received from the closing will pay home insurance,vacancy until rented, property maintenance etc. Now refinance with cash out and buy a multi family. My end game, using my first flip as leverage and have two properties in my portfolio. My market area allows me to have two properties for $475k - $500k. If I sell, it will be starting over and having one property for $350k which is the multifamily. Question: should I BRRRR ?

Great job, congratulations. 

Thanks Craig. I'm hoping that this flip will lead to my first BRRR.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $150,000
Cash invested: $50,000

Total rehab, down to the studs. The house had no insulation and one broken heater due to not being winterized. This is a single family home. 3 bedrooms, big dining area and living room. Small kitchen and bath. 2 car driveway and small yard. Bonus the house has a working central air.

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

The price and location.

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

Found the deal via MLS website as I am a real estate agent. Negotiate the price down $10k.

How did you finance this deal?

Private investor.

How did you add value to the deal?

New : roof, walls, ceilings, kitchen, bath, electrical, floors, paint, insulation and landscaping.

What was the outcome?

Still work in progress. Spent $27k of $50k budget.

Lessons learned? Challenges?

Lessons learned: Leave the skills work to the professionals. DIY for my first set me back $3k , 3 weeks and my valuable time.
Challenges: Finding honest contractors and people willing to work. I did get 2 - 3 quotes from contractors and I'm glad I did. It saved me thousands and the contractors that I hired are great.

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

I'm a real estate agent.