All Forum Posts by: Justin Melendez

@Marija Sparano in my experience there is always opportunity in Fayetteville however, competition is fierce. Plug in with the right people (most of them are on this forum) and you should find success. 

@Brandon Craig thank for the response, I’ll continue to share in the future. 

Investment Info:

Single-family residence fix & flip investment in Hope Mills.

Purchase price: $35,000
Cash invested: $41,437
Sale price: $114,000

Initially bought this deal to BRRRR. As the project matured I decided it would be better to just flip. I wasn't impressed with the neighborhood and the rents were lower than projected.

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

This was my first deal as an investor. Single Family Home made it so I can do the math on a napkin or a BP Calculator ;)

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

The deal was on the MLS. I initially offered on the house a month before I actually got my final offer accepted. My initial offer was rejected, and the seller took a full price offer; that deal fell through.

I kept tabs on the property. I noticed the seller lowered the asking price a few weeks later. I took this as my cue to make another offer. She countered, I accepted. All though the house was being sold “as-is” , we further negotiated sale price during the due diligence period.

How did you finance this deal?

Personal Savings

How did you add value to the deal?

Pretty much rehabbed all of it. Roof, paint (interior/exterior), subfloor, floors, duct work, front/back yard, fence, interior/exterior doors, master bath, converted half bath/laundry to full bath, moved laundry to utility room, kitchen counters, cabinets, appliances, deck, and many more minor details.

What was the outcome?

Flipped the house, made a profit, had fun, learned a ton, built relationships.

Lessons learned? Challenges?

I decided to take on demolition and landscaping myself to save money. This ended up being A LOT more work than I expected. I spent more time than anticipated working on the house. In the end, it saved me about $2k. In the future, I will make sure the deal is sweet enough to not fret about $2k.

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

Season to Season Contracting LLC; JTOPP Realty

@Stephen Bardos congratulations! Do you mind sharing your rent price/cash flow information?

@Andrew Schrader thanks for the response. I should've included some more detail. While this is my first BRRRR | Flip, it's not my first rental. I've owned another rental property for about 3 years now. However, that rental property is managed by a property manager which is how I plan all my rentals to be run. Maybe I've been fortunate but I haven't noticed much physical, emotional, or financial demand from that rental. I'm not sure if that counts as a real landlord experience. I've toyed with the idea of putting the place up for rent at a number that makes sense and sale and the same time and seeing who bites first. I'm also exploring the lease to own options, but I still have some more research to do on that front. Do you have any experiences with lease option to buy contracts? I see there is a section in the forums on it, I plan to do some research this weekend.

@Alexander Felice good point on the replication perspective. I think I’d be able to replicate this scenario, or a better one for a buy and hold. This being my first one, I probably over rehabbed. I could’ve got away with less of the flashy cosmetics to rent at the current market value. Thanks for your input!

Hello BP Fam,

I am about half way into the rehab of my first deal and wanted to reach out to the community and gather some opinions. Before I get into the numbers, I will say that my long-term investment goal (the why) is to gain passive income through long-term buy-and-hold rental properties in order to supplement a military pension in ~10 years. I am open to flipping houses to raise capital to put towards more/better long-term buy-and-holds. 

The current property I am working on technically works for both a flip and a BRRRR, although it has less than desirable cash flow in a less than desirable (for me anyways) class C neighborhood. There are a few things that give me pause for BRRRR'ing this house: cash flow, tenant base, neighborhood. The HUD was built to support delayed financing in the event I decide to go that route, thanks to @Alexander Felice for sharing his deals! Part of me just wants to flip it, add an extra ~$10-$15k to my working capital and move towards a small residential multifamily property for a better cash-flowing BRRRR. Please let me know what you think, here are the numbers and BP Calculator snippets. 

Purchase Price: $35,000

Renovation: $43,725 (includes 10% overage) 

ARV: $105,000 (Will likely list for $110,000 comps support it)

Rent Prices: $900

BRRRR

FLIP

@Dominic Franco 

I know this post is about 2 months old, but I am soon to find myself in a similar situation. What route did you end up choosing for asset protection? 

-Justin 

@Jim Lamp'l

Hey Jim, welcome! I'm currently in Fayetteville, trying to get started with some SFH/MFH BRRRR investing. Been writing offers, but no luck yet. Keeping my spirits up and continuing to run numbers and make offers. There seems to be a great investor network here in Fayetteville. I've met some solid investors, agents, general contractors, and property managers. I've connected with some of them on BP and some in person by attending @Shelby Osborne ‘s (Five Pillars Realty Group) Pints and Properties meetup. Everyone has been very helpful thus far, so I'm sure if you ask the right questions they'll be answered.

Best of luck to you Jim, look forward to seeing you around the neighborhood!

@Daisy Ferreiras good job! While the numbers may not be favorable for some, the important part is that you guys took action and the deal is working for you. Next time I'm sure you will take all the input from BP and find yourself a better deal where you don't need to leave money in it. Take sometime and look up other exit strategies like delayed financing. It'll help you get your capital out before the 6 month seasoning period. Do some research. Find some lenders willing to do it. Look at @Alexander Felice page where he publishes how his deals are structured and even provides the HUD statements to go along.