All Forum Posts by: Walter Anderson

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $74,000
Cash invested: $35,000
Sale price: $125,000

Move into fixer upper-

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

I believe it was a Fanny Mae Homepath property. Because of this, If I moved in I had first dibs in buying the house over other investors.

How did you finance this deal?

I think it was about 7Kish to get into the property 3.5% down on a conventional loan, then I spent about 35K in the renovation.

How did you add value to the deal?

We were able to take the basement and turn it into a bedroom and also the room off the kitchen and turn it into a bedroom. The house went from a 3/2 to a 5/2. Spent 35K in fixing it up

What was the outcome?

After 6 months I refinanced it as a owner occupancy and soon to be 6 months after refinance I am looking to move out and find another house (we will see in this market). I was able to get 80% refi out. I left some money in this one (10ish K) but have a nice rental.

Lessons learned? Challenges?

My new mortgage is about 600 a month, and I am looking to rent it for 1300 a month after I move out and use it as a rental. Not a perfect BRRR but it will do-

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $74,000
Cash invested: $35,000
Sale price: $125,000

I moved into a fixer upper last year for 74k. I believe it was a Fanny Mae Homepath property. Because of this, If I moved in I had first dibs in buying the house over other investors. I think it was about 5K to get into the property on a conventional loan, then I spent about 35K in the renovation. We were able to take the basement and turn it into a bedroom and also the room off the kitchen and turn it into a bedroom. The house went from a 3/2 to a 5/2. It was a slow process but much faster than my first fixer upper. After 6 months I refinanced it as a owner occupancy and soon to be 6 months after refinance I am looking to move out and find another house (we will see in this market). I was able to get 80% refi out. I left some money in this one (10ish K) but have a nice rental. My new mortgage is about 600 a month, and I am looking to rent it for 1300 a month after I move out and use it as a rental. Not a perfect BRRR but it will do-

Thanks

https://www.zillow.com/homedetails/11309-Spring-Valley-Rd-Kansas-City-MO-64134/2462387_zpid/

Investment Info:

Single-family residence other investment.

Purchase price: $47,000
Cash invested: $18,135

3bed 1 bath BRRRR

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

This looked like a possible BRRRR, get my money back.

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

I found it on MLS, it was good price, negotiated for them to put pillers in basement.

How did you finance this deal?

Bank funding, 15% down. The closing costs were 9134.41

How did you add value to the deal?

Everything got tuched new paint inside and out, referbished kitchen, new bath, buffed and sealed floors, new lights, everything was touched.

What was the outcome?

Bought house at 47K put about 8-10K all in at 57K in and it ARV'd at 90K was able to get all the money back that we put in and it cash flowed well. My refinance check was 23,849.86 after paying off my previous loan and It was a lower rate than the bank finance I originally had. It want from 6% down to 4.625. So outcome was I got my money back and cash flow property 200+

Lessons learned? Challenges?

I did alot of it myself, so hopefully I can do it quicker next time.

I have all long term lease section 8 tenants so no problems so far-

I use  4% vacancy, 7% for maintenance and capex because that is what Brandon Turner uses on his bigger pocket webinars, or at least the ones that I saw. I do 8% for property management because that is what my property management charges. I need at least 200 cash flow after subtracting these things that could go wrong and also the monthly mortgage (this is what he uses as well). For practical purposes I have more than a 5k reserve for each property I own. I had a bad December and payed about 2k that month, it is a good idea to have reserves as well.

@Michael Ealy I have found a good private lender in KC and have a trusted contact that will do the rehab ( He and his team has done many rehabs for BRRRS and flips). It is just a process finding deals and analyzing them and also somewhat of fear of the unknown. 

@Nathan Gesner@Suzan Hampton@Timothy Young

Thanks for all the comments and good questions, wish you the best on your investments!