All Forum Posts by: Shannon Vanderweide

Hey BP community!

I apologize ahead of time for the awful photos and probably poor formatting of this post. I had no intentions of refinancing this property or ever posting about it so I took some very awful pictures for the before. The next house I'll pay a little more attention to the pictures. I also have no idea how to write one of these to make it seem interesting.. So here we go.. 

The Property...

• The house is located in a C neighborhood. 
• It is legally a 3 bedroom 2 bathroom with an additional 2 non legal bedrooms in the basement. 
• Ranch style home with 2 stall detached and fenced backyard.

The Financing/Purchase..

• Off the market deal - friend of a friend deal. 
• 20% down on 30 year conventional at 4.75% interest. 

The Numbers..

• Purchase Price $75,300
• Down Payment $15,060
• Closing Costs $857
• Rehab Costs $5,865 (Actual)
• Holding Costs $1,329 (Actual)
• All In $23,111

The Refinance..

• ARV: $126,000
• 75% LTV: $94,500
• Walked out of closing with a check for $26,275

In total I was able to pull out all of my initial funds and an additional $3,164! 

So anyone that is good with numbers is going to be very confused with how this added up.. So a few side notes for the particular people.. :) 

1. Because I knew the seller I was able to have them to pay 100% of closing costs (minus inspections and appraisal) for a higher purchase price. I believe I negotiated that I would pay an additional $3k for the house if they pay all fees.
2. Because the property was located in a C class neighborhood the city had a "rehab" program that was an interest free loan for replacement of the roof. I took advantage of this and when the refinance was done it was repaid at closing. 
3. Most of the repairs was all "sweat equity". Lots of painting, cleaning (LOTS of cleaning), new carpeting, new gutters, garage door opener, some new doors, etc.
4. My holding costs were very minimal because after purchasing the house, the seller rented it from me for almost 2 months. Repairs/cleaning took approximately 3 weeks (I work full time as well) and the management company was able to have it rented and moved in within 3 weeks! 

(Sorry, some of the photos refuse to rotate. Tilt your head and you will get the point. ;)  ) 

Can't wait to see how this next BRRR turns out!

@Julie Marquez I wish I had some input, but I am in the same boat. I have to ask.. I have a very similar mind set.. Each month I have a set amount of cash I want to save towards a down-payment for the next property... If I don't save that money for the month, I can't help but feel like I am a failure and will never reach my goals. 

What happens if you can't manage to save your monthly goal (I think you mentioned $2000) because of unforeseen expenses?

@Tiffany S. 

I actually bought quite a few but the most helpful ones I found were: 

-The complete guide to investing in rental properties by Steve Berges

-Rental Property Success by Josh Kattenberg

-Idiot's Guides: Making Money with Rental Properties by Kimberly Smith and Lisa Lannucci

@Chris Pohlson  Wow! It looks fantastic. I was excited to see the pictures and then seeing you are from Sioux Falls just added to it! Nice work. Great to see there are some local investors on here. I would love to hear which contractor you used, they are hard to come by from my experience so far.

@Carolina E.  Thanks for the input! I am still tossing around the ideas of just moving the plumbing and taking down the middle wall... I will post some update pictures in a few weeks when I make a decision and its done. :)

@Elizabeth V. The house is very old but I am slowly updated the whole thing.. I am not sure if higher end is really what I am looking for.. but something simple but would excellent. That bathroom is the only one on the main floor, it is directly off of the dining room and there is only 1 bedroom on the main floor that would be using it. I was considering moving the plumbing and removing that wall and maybe even adding the laundry to the same bathroom maybe.. I would prefer to not re-configure the windows if at all possible though. 

@Jeff Berg Sorry, I was just trying to post general concepts, I can take to get a more correct scale this week! 

@Brian Pulaski Thanks for the input! 

Hey BP!

I just closed on a 4 bedroom/ 2 bathroom house Wednesday that needs some serious help.. Its an early 1900's build with original woodwork and etc. One of the bathrooms need a complete redesign. It is just not very functional the way it is.. I am looking for any kind of input or suggestions to make it better. I already plan on replacing the flooring, etc.. but looking at more of the room layout its self.. suggestions? 

Thank you!

How long did it take from closing to hitting the market? 

Looks fantastic! Nice work.

I had quite the opposite experience.. I decided one day to start investing, bought a few books and read through them and 3 months later I closed on my first property. That was January of 2016. As of today I am in the process of closing on my 3rd property this year. 2 SFH and 1 Duplex.

@Lane Lundeby, Thank you! I will reach out to Nichoelle!

@Benjamin Aaker, Thank you for the offer, I don't think I have any property that would be able to secure a loan however.

@Chris Mason- I am looking towards traditional/conventional loan for that exact reason.. If needed, I can do an FHA and occupy the home for 1 year, it doesn't matter much to me.. I am mostly doing this first one for experience, I am not planning on making tons of money on the first flip.. just being realistic and wanting to take my time with it. I was advised though that there are still multiple requirements for a traditional loan still, just like an FHA loan. It just seems like no one can tell me EXACTLY what these requirements are.