All Forum Posts by: Kyle Jensen

@Brian Leigh of course $15k is not a lot when we look at profit, but I’m happy with it for a few reasons:

1. That is a 22% return on investment. Last I checked, that’s better than the Wall Street guys

2. I work full time and family is also very important to us. This project didn’t require me to lift a finger and didn’t consume any nights or weekends. That’s worth a lot to me since this is a side hustle.

3. From purchase to sale, this will be a 5 month turnaround on that capital which lets us use it again this year. 

4. Lastly, since our initial plan was to keep this as a rental and selling it was a secondary exit strategy, I’m happy to make the money on a property that we ultimately decided wasn’t something we wanted in our portfolio long term. 

@Brian Leigh I don't mind sharing if it helps others. 

@Brian Leigh thanks for asking. We didn’t find any tenants that met all of our criteria in the first few weeks, so we decided to list it for sale and it went under contract in just about two weeks! We are two weeks out from closing on this deal and we are actively looking for our next property. We’ll use the money we make on this deal to roll into the next property. 

@Ashley Rummage

For a newbie, I would recommend episode 290 ... 7 paths to financial independence.

And episode 300... How to invest in real estate, the ultimate show for getting started.

Hopefully some of this will resonate with him and lead to more education and action.

@Philip Sriployrung

If you didn't have to do any renovations, it doesn't sound like a true BRRRR property. After all, the second R is rehab, and that is your value add opportunity so the property will appraise at the desired value.

It sounds like this was a good learning opportunity though and you’ll be ready for the next one!

@Javier Pagan

If your primary residence needs repairs, I think you need to take care of that first. I would hate for you to get a rental property and then something happen to either your rental or primary residence and you don’t have the emergency funds to take care of it.

@Jack Bobeck We have certainly contimplated flipping it, but our goal is long term cash flow and it’s hard to argue with a “free” property if we can get all of our money back when refinancing. At this point we are going to hold onto it. I hope I don’t look back at your post in a few years and kick myself though! 

@Sidney Qiu The contractor did stay on budget (well, almost), but I’ll send you a separate message about him. 

@Jason D. I appreciate the feedback and that is certainly something I have thought about. We have learned some lessons on this first deal and we have plenty more to learn as we move through the tenant screening/landlording process as well as the cash out refinance. My reasoning behind the slightly nicer finishes was to help drive the appraisal to a number that would work for us.  For example, the granite cost $900 and I thought that the durability and the “wow factor” was worth spending a little more over something like laminate.  Depending on how the rest of this process goes though, I will certainly evaluate other levels of finishes on our next deal. 

The good news is that I was conservative on the rent estimate at the beginning and it looks like we should be able to get $1000/mo now as well. 

Oops.. my pictures didn't come through on the last post. Let's try that again! 

We finished up renovations last week! It ended up being about a 2 month project, which was 2 weeks longer than what was planned, but all in all, I’m happy with how it turned out. Check out a few of the “after” pictures below!

Now we are listing it for rent this week and will be working through tenant screening.