All Forum Posts by: Randy Wiley

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $38,155
Cash invested: $40,000

My wife and I bought this house. For 38,155 it was a HUD home and we had to live in it for a year before we can move and rent it out. We added a bathroom reconfigured the layout of the house. Updated kitchen, with all high-end material. We added a second bathroom also with high-end material too. All the work was done by just the two of us. Then we updated the furnace added AC. We also did the water heater and the roof. Here are the numbers. Purchase price 38,155, 40,000 for all updates and labor. All in 78,155. We then went to the bank to ask for another HELOC. We had the house appraised and the appraisal came back at 140,000. We then paid off the first HELOC on our first home (65,000), which is now a rental and cash flowing 600 dollars. We then bought another off-market deal for 30,000, and we are currently renovating. We should be done in two weeks.
Let me know your thoughts.

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

Long term goals.

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

HUD Home

How did you finance this deal?

BRRRR from primary house.

How did you add value to the deal?

Force equity

What was the outcome?

140,000 HELOC. To buy our third house.

Lessons learned? Challenges?

Ask questions

So my wife and I sorta went through this about a month ago. The tenant wasn't paying and the landlord was done trying. The house was for sale by the owner. We called and got all the info and I told her my idea to get them to move she agreed to it and we signed a PA. So I then put my plan in motion. We wrote up contract cash for keys. 2000 if out by 7 days. 1500 if out by 14, and so on until 30days with a 0 being given after that. They were out in 5 days. Hope this helps.

@Grant Thompson. Thanks, we are currently working on our third house. I am going to put them in later today.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $36,000
Cash invested: $20,000

My wife bought this investment property, as a starter home before we met. Then I got the bug of owning REI. So we decided to update this house and do a BRRRR on it. We owned this property out right. We put 20,000 into it and then had it appraised. It appraised for 75,000. We were all in for 56,000. So we went to the bank and asked to pull a HELOC to buy our next home. They gave us 65,000 on our HELOC 90% of our AV.

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

We already owned the house.

How did you finance this deal?

We used our tax return, and money we have saved.

How did you add value to the deal?

We tore the whole back side of the house out down to the studs and dirt. Then we re-configured the layout, and used better material.

What was the outcome?

We got exactly what I thought we could for the house we have.

Lessons learned? Challenges?

I can do Anything with an open mind and a true heart.

So my wife and I did a BRRRR, in a house, she bought about 14 years ago. It went very successfully we pulled out 320% more than the tax value. The bank asked are you sure you want to do an appraisal? I told then yes I am 100% it's worth more. The validation after it came back was amazing. So here is my question. We are thinking that we need to wait and see if the fall marker comes down, and all the people that can't pay their mortgage. While still doing our postcard campaign, which as of right now we are at a 5% return on our campaign.

What are some of you doing right now? We don't want to catch a falling knife, and we are running numbers all the time to see if it will all work and continuing to look for opportunities as they come. Thanks in advance for taking time to respond. 

Randy.

Yes, the property is in Port Huron. I will check out the investor's page. Thanks for your guidance, and for taking the time to help me. 

My wife and I are looking to buy multifamily that has to be totally redone. The current owner didn't do any repairs ever it looks like. We live in Port Huron are specifically. We are also going to try for a 203k loan to fix it all. So the bank asked us for a contractor to come in and give quotes on all of it.

No, we didn't. We are going to put equity in our house and then really start looking. We own our house and want to do a HELOC loan to start out.

@Andrew Syrios and @Ben Leybovich we have put that book in our buy cart and looking forward to reading all of the great information in the book. 

Ben I will be looking forward to the book when it gets done.

What is the main things that you look for when you BRRRR the multifamily units. The more they are run down the better, or are you buying homes that you can make into multifamily units? The house that we are looking at now the landlord pays the water. Is that something I can split and make the tenants pay? You also said you don't take out cash, or refinance. What does collateralize the equity?