All Forum Posts by: Sawyer Kelly

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Oak Island.

Purchase price: $417,000
Cash invested: $50,000

House Hack
Old house PITI: $1,627
House Hack PITI: $2,610
Current Rental Income: $2,325
Mortgage Remaining: $285
Annual Mortgage Savings: $16,104
Total Capital Invested: $47,000
(Acquisition 3.5% down FHA plus closing costs & Inspections: $24,700
Repairs/Renovations: $22,300)
Net Worth Return On Investment: 34%

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

House hacking seems like the best way way to improve your financial situation and get hands on real estate investing experience at the same time.

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

MLS in the midst of COVID panic

How did you finance this deal?

Personal Savings and an FHA loan

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

My real estate agent and lender were the 2 most important people on my team for this deal. Met both of them through BP meetups. They have a great relationship between the two of them and it makes the whole process smoother. PM me to get this duo's contact info if you're in southeast North Carolina.

Hey Jonathan, we closed on a triplex in June. The appraiser was having a tough time finding enough comps in the area. He said in situations like that they would not only have to expand their search ring, but also give more weight to the rental income as a means of determining value. Not sure if this is standard, just our recent experience. This was in coastal NC.

I have an off market deal lined up, I'm comfortable with the numbers, and it'll be a good opportunity to gain experience. Looking to Brrrr the property and hold it long term.

Type: 2 Bed 1 Bath single family home with 1400 square feet. Basement has potential to be finished. House is in good shape in a nice area. 

Location: Indiana

My question pertains to gathering the funds from family and friends in order to make the cash buy. I have the group of people along with the amount they want to contribute as passive investors, but I'm trying to figure out how the money will change hands and how to structure the terms. I'm planning on doing promissory notes and taking out loans from them, but would like to know if there's any other way of pooling the money. I plan on cash out refinancing after the rehab is done and paying them back along with the interest accrued throughout that period.

Market value: $100k 

Purchase price: $75k

Renovations: $30k House doesn't need many repairs, but this is the estimated cost of finishing the basement and adding a bedroom and bathroom.

After repair value: $150k

Current rents per month: $1100

Income Source: W2 employee

FICO: Good

Plane he's looking at is $40k. The reason he doesn't want to sell this house is because he's discouraged by the capital gains tax as well as the effort he would have to put in to list it. A 40k down payment plus him carrying the note would satisfy both motivations.

Hey BP community,

I have a friend that is talking about selling a house he owns free and clear. He's had it for 10+ years and has been renting it out successfully. However, he's tired of dealing with it and wants some cash to buy an airplane. I'm trying to figure out how I could make this a good deal for both of us. If he'd be willing to do seller financing with some sort of down payment, but sell for below market value, then he'd be getting some cash without having to pay the capital gains and I'd get a good deal. I'm sure there are some holes in this logic, but I'm still doing research and figured I'd see what you guys had to say. Thanks for any insight.