Hi All, It has been a very hectic and busy 9 months for me going from 0 to 60 in real estate. I always get a rush from reading some of the success stories posted on here so i figured i might as well share mine. It has been a good 9 months.
My first investor deal was an OO buy and hold 4 unit that kicked everything off for me. After that i closed on my first flip about 4 months later. I then proceeded to close on 3 more flips within 1.5 months, sell a condo and finally close another buy and hold closed yesterday.
The best part about all of this has been trying not to give my fiancee (wife in 2 weeks) a heart attack. She is a lot more risk averse than i am. However she has fully supported me in all of it and contributes funds and credit when needed. I look forward to enabling her to retire and pursue her passion for non profit.
It has been fun trying to do this while working full time but i am glad i went for it. Succeeding in this for me is a testament to working with partners. I own all my rentals on my own but all the flips are being done with construction partners which allows me to keep working full time and manage my rentals. I would definitely like to give a shout out to @Frank Ponticelli my attorney who has attended 6 closings with me so far, my partners and fellow investors to bounce ideas off @chidi Osuji, @John Casmon, @neil thakkar, @Xavier Y., @brie Schmidt and @George foster (i believe i met all of my partners at their meetups).
Also thanks to all the BP members who have answered my questions and guided me through some of the deals as they kicked off. 2016 should be a great year. Especially with the sale of all the flips that are in progress
Deal Synopsis
Albany Park 4-Unit
Acquisition: $495,000
Down payment: $100,000
Gross Rent: $49200 (I live in one of the units)
Vacancy (5%): $2460
Expenses + Capex: $14760
NOI: $31980
Annual Debt Service: $30,000
Annual Cash Flow: $1980 (my unit can rent for about 1K a month once I move out which adds over 10K to cash flow)
Albany Park 2-Unit + Garden
Acquisition: $375,000
Down payment: $13000
Gross Rent: $33600 (Living in the garden unit)
Vacancy (5%): $1680
Expenses + Capex: $10080
NOI: $21840
Annual Debt Service: $20892
Annual Cash Flow: $948
The building appraised for 25K more than purchase price (with FHA appraisal which is usually stricter) so once I hit six months I will refinance and remove PMI which will add $292 a month to my cash flow. Also rents are low for the current tenants and I plan to increase them at least 75-100 for each unit by June which will significantly increase cash flow.
Portage Park Flip (this has been presold and contract is signed. Just finishing construction)
Acquisition: $181,000
Rehab: $140,000
Permits & Holding Costs: $52,000
ARV: $450,000 (under contract at 450K)
Projected Total Profit: $77,000
Uptown/Ravenswood Flip
Acquisition: $415,000
Rehab: $185,000
Permits & Holding/Financing Costs: $100,000
ARV: $900,000 (very conservative as some comps are over 1mil)
Projected Total Profit: $200,000
Albany Park Flip
Acquisition: $215,000
Rehab: $130,000
Permits & Holding Costs: $60,000
ARV: $500,000
Projected Total Profit: $95,000
Irving Park Flip
Acquisition: $340,000
Rehab: $195,000
Permits & Holding Costs: $50,000
ARV: $730,000
Projected Total Profit: $145,000
Condo Sale - non investor deal (I bought this condo in 2013 to live in and it has served me very well and helped kick everything off. Lived in it for 2+ years then sold it)
Acquisition: $77,000
Rehab: $8000 (Replace HVAC and repaint and some minor fixes)
Permits & Holding Costs: Essentially 0. - I had a roommate paying rent that covered all of my PITI+HOA fees. I lived in it so routine maintenance was done by me and HOA took care of the rest. All utilities except electric were part of HOA fee. No vacancy cause roommate was there till i sold it.
Sold: $132000
Total Profit: $40,000 (Tax free since i lived there for over 2 years)
