All Forum Posts by: Richard Locklair

@Alex Jones Right now it's my wife and me.  We've found a Broker, Property Manager, Contractor, Attorney, and Tax Pro that we really like working with.  We're on our 5th deal and we're working on getting our processes working smoothly.  Still learning a lot.

@Scott Slocum That's right.  We had enough money for the next deal, so we wanted to keep our cash flow positive.  Our lender also said that we should keep our debt to income ratio strong so we could keep financing more properties.

@Marcus B Hsu Thanks for writing. We paid off our HELOC with the $80K. We wanted to leave some extra money in it to keep our cash flow positive and to keep a good debt to income ratio.

@Linnea Minnema It rents for $900, the PITI payment is $626 and the Property Management fee is $90. Our rehab up front should keep CAPEX and repairs down. The tenant covers utilities, trash and lawn-care. So there won't be a huge amount of cash flow for a little while, but we got a nice ARV from it.

Hi @Rhonda Blue , Looks like you have some long term rentals in the Huntsville Area AND some AirBNB in the Gatlinburg area. I love that area for hiking and "Southern Slush" skiing.  That's a wonderful place to own property! 

Hi Rhonda,

Looks like you have some long term rentals in the Huntsville Area AND some AirBNB in the Gatlinburg area.  I love that area for hiking and "Southern Slush" skiing. 

Thanks.  The previous owner added 1 bedroom and a bath by  converting the garage.  We had to add a split unit AC to adequately cool the garage extension.  Alabama gets hot.  

Thanks.  Yes, we live in Athens, between Huntsville and Decatur.  Are you visiting Huntsville to look at properties? 

Investment Info:

Single-family residence buy & hold investment in Decatur.

Purchase price: $50,651
Cash invested: $40,000

4 Bed 2.5 Bathroom

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

Decatur is a secondary market to Huntsville, AL. Huntsville is forecast to pass Birmingham as the largest city in AL by 2024.

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

This house was a foreclosure and was vacant for 7 years. We purchased it on the courthouse steps.

How did you finance this deal?

Purchased with HELOC, rehabbed with savings, refinanced with 30 year conventional loan.

How did you add value to the deal?

Updated everything.

What was the outcome?

All in at $90K, Appraised at $125K, Rents for $900/month

Lessons learned? Challenges?

BRRRR is great!

Investment Info:

Single-family residence buy & hold investment in Decatur.

Purchase price: $50,651
Cash invested: $40,000

Single Family 4 Bed 2.5 Bath, 2500 SF Single Family

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

Decatur is a secondary market to Huntsville AL. Huntsville is predicted to surpass Birmingham as the largest city in Alabama by 2024.

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

House was foreclosed and sat vacant for 7 years. We purchased on the courthouse steps.

How did you finance this deal?

Purchased with HELOC, used cash to renovate, refinanced with a 30 year loan.

How did you add value to the deal?

updated everything

What was the outcome?

All in for $90K, Appraised at $125K, Refinanced for $80K Rents for $900/month

Lessons learned? Challenges?

BRRRR is great!