Author Topic: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE  (Read 10450 times)

sammybiker

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    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #100 on: October 04, 2018, 04:52:47 PM »
Update

Property #2 
On the rental market now.

Property #3
Mold remediation is complete and the property is dried out.  The big day is tomorrow when the mold inspector goes through the property, takes samples and certifies the house as mold free.  We'll then be able to kick-off the drywall.

Electrical has been updating boxes, some wiring and running some new wiring to support additional recessed lighting in the kitchen.

Some additional budget growth with electrical, exterior repairs and some cosmetic scope decisions of my own. 

Flooring, paint, baseboard is ordered, should be arriving late next week.  I'm pretty excited for the concept here, sticking with the same cathedral gray walls of property #2, white ceiling & baseboard but coupled with a wide plank, light gray laminate flooring that should pair well. 

But first...we need to get our mold free certificate.  We'll see what tomorrow brings.

Property #4 No real updates, the wholesaler is having some issues contacting the seller, which isn't uncommon.  Maybe they got a call from another wholesaler and think they can get a better offer.  We'll see.  Still under contract but if the seller disappears, not much I can do.

Meanwhile, I'm continuing to make offers.

Property #3 Progress Photos Below

43088526_262694747716335_4245265857141276672_n by sam burn, on Flickr

43130233_805905579584574_5241026309294915584_n by sam burn, on Flickr

43056079_468085080355435_1206581945534775296_n by sam burn, on Flickr

43062083_244860416375926_8133296396393512960_n by sam burn, on Flickr

43012731_186351515508798_4001361579298783232_n by sam burn, on Flickr

43078585_255626491763535_2139248670980177920_n by sam burn, on Flickr


tralfamadorian

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #101 on: October 04, 2018, 05:19:21 PM »
Looking good @sammybiker ! How is #1 doing out there on the rental market?

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #102 on: October 05, 2018, 06:38:28 AM »
@tralfamadorian A lot of interest, screening now, should have someone locked in next week. 

tralfamadorian

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #103 on: October 05, 2018, 10:51:42 AM »
Great! Are rents lining up where you expected?

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #104 on: October 05, 2018, 11:37:07 AM »
@tralfamadorian Yes.  I was shooting for $1800 for property #1 and that's what I listed it at.  Another house in the same neighborhood just went up for rent yesterday, 200 sq ft smaller and with a smaller and less attractive backyard.  I think the market would support $2,000 for my house and I'll actively bump rents next year to get closer to that figure.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #105 on: October 12, 2018, 02:32:39 PM »
Update

Property #1 Rented at $1800/mo

Property #2  On the rental market for $1650/mo - trying to send a few folks that were interested in property #1 but didn't get their deposit in fast enough over to property #2.

Property #3 Mold remediation completed last week and samples were taken last Friday.  I received the results back this week and we were given the all clear.

HVAC installation was completed as well as installation of a new garage door.

Drywall started today, paint and underlayment is waiting at Home Depot for pick-up and the flooring gets delivered early next week. 

Property #3 Progress Photos Below

47c8f066f9c972cac1f5c6da7d9cc6e4f1185a29-1 by sam burn, on Flickr

46f1ce11cdba0ab683050ad359086ec8fc08b8a6-1 by sam burn, on Flickr

5bc4d7fc7711e5c9b0055e72744d18271d92f5da-1 by sam burn, on Flickr

69728500b3712d877b20aa1ad172039a7cd9b021-1 by sam burn, on Flickr

tralfamadorian

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #106 on: October 12, 2018, 05:55:52 PM »
Update

Property #1 Rented at $1800/mo

Woo hoo!

Laurel

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #107 on: October 15, 2018, 08:49:19 AM »
We're under contract for our first rental property, a duplex in Michigan. We don't have as grand of plans as you (or the money or confidence) but are eagerly following your journey and learning a lot. Thanks for sharing; appreciate all the details and numbers!

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #108 on: October 15, 2018, 11:58:52 AM »
Thanks @tralfamadorian it feels good to have the first one rented and cashflowing.

Thanks @Laurel and congrats on your duplex.  Michigan is a strong rental market and can provide some great cashflow opportunities and fast track you to FIRE, if you're so inclined.  A large portion of my portfolio is not too far away from you, in the greater Toledo area.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #109 on: October 17, 2018, 04:44:52 PM »
Update

Property #1 Rented at $1800/mo

Property #2 On the rental market for $1650/mo.

Property #3 Drywall moving at warp speed, these guys are fast.  Kitchen will be ordered this weekend, flooring should be delivered tomorrow or Friday.  Added a few more light cans in the living room, minor scope growth there.  Everything else is moving along.

Loan documents submitted on Monday for the refi of this home.  I submitted an updated personal financial statement but my banker called me back and said no need, they'll use my PFS from three months ago (although I told him I've taken on more debt) as well as my prior credit report.  Painless and easy, gotta love commercial lending.

Continuing to make offers every week on other properties but nothing has stuck yet.  But when it rains, it pours, so I'll remain patient.

Property #3 Progress Photos Below

6437b5862d171253864f56d88185c9e93bb13eec-1 by sam burn, on Flickr

7f0b30bf5eef350c83547047ae77812674509f43-1 by sam burn, on Flickr

7ae138338559331a8ab1a52336d5ca0a090ec44d-1 by sam burn, on Flickr

dc8ae732f267b5220019444a7e487741bb689a79-1 by sam burn, on Flickr

c2a186263c12f5c524f5ebeefc3f5b461d353723-1 by sam burn, on Flickr
« Last Edit: October 17, 2018, 04:48:06 PM by sammybiker »

Another Reader

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #110 on: October 17, 2018, 05:08:51 PM »
Looking really good.  You are filling a need to rebuild the government can't.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #111 on: October 18, 2018, 11:21:52 AM »
Thanks @Another Reader - the feel good factor is definitely real, bringing a neighborhood back up to speed.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #112 on: October 21, 2018, 11:54:19 AM »
A summary update of this challenge thus far - I'll try and post this every few weeks as additional properties get through the appraisal and rental process to provide a clean and quick update.

Property #1 Equity Earned:  $83,000  Monthly Cashflow:  $250

Property #2 Equity Earned:  $42,000  Monthly Cashflow:  $375

Property #3 Equity Earned (forecast $30,000)  Monthly Cashflow (forecast $350)

Property #4 Not under contract

Property #5 Not under contract

Equity Earned vs Goal (including forecast):  $155,000/$200,000

Monthly Cashflow Earned vs Goal (including forecast):  $975/$1625

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #113 on: October 25, 2018, 02:04:35 PM »
Update

Property #1 Rented at $1800/mo

Property #2 On the rental market for $1650/mo, applications under review.  Hope to have a deposit by next week.

Property #3 Drywall texture on-going today, should be ready to start interior paint Monday.  Floors arrived Tuesday, still working through kitchen layout and pricing but should be good to pull the trigger this weekend w/tentative kitchen install starting in 10-12 days.  Exterior repairs completed, exterior paint to start next week, just waiting to get into town this Sunday to pick a few colors out for exterior trim.

I was really close to getting #4 under contract this week but not quite there, only $2k away on price...on paper, it looked great but being that it was located on a less desirable street/corner of town (of the good part of town), close to several multi-family properties...couldn't justify it.  The search continues.

Property #3 Progress Photos Below


44753644_112376213007282_7492261987615768576_n by sam burn, on Flickr

44759921_2452453908114526_8632597481403711488_n by sam burn, on Flickr

2a124439d3554645d4282c73c8beed2ce2ee8f5b-1 by sam burn, on Flickr

bd255990e6e6687de07eb576049727cf0dffc758-1 by sam burn, on Flickr

90eca47397fefe67a267eb09e73420c5025e009b-1 by sam burn, on Flickr

54f6f6391cb8b8901aca6255d63b34b5a9e8725c-1 by sam burn, on Flickr
« Last Edit: October 25, 2018, 02:08:07 PM by sammybiker »

frost7777

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #114 on: October 30, 2018, 08:34:10 AM »
@sammybiker, just wanted to say that I am really enjoying this thread!  Keep the updates coming, and keep up the good work.  Thanks.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #115 on: October 31, 2018, 06:37:07 PM »
Thanks @frost7777

Trifele

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #116 on: November 01, 2018, 04:48:33 AM »
I love the thread too, @sammybiker.  I've learned a ton -- thank you.   

tralfamadorian

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #117 on: November 01, 2018, 09:24:57 AM »
Piling on- these threads are 1000x better for a new investor than the guru crap that we often see newbies come around asking about. @sammybiker is awesome!

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #118 on: November 01, 2018, 10:54:45 AM »
Thanks @Trifele  &  @tralfamadorian I really appreciate that.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #119 on: November 01, 2018, 11:03:05 AM »
Update

Property #1 Rented at $1800/mo

Property #2 Application & deposit received (rented at $1595, not $1650 as posted earlier - my mistake). 

Property #3 Interior paint completed, electrician coming back on Saturday to add a few more light cans, install plugs/switches/covers and relocate the oven hook-up (my fault, oops).  Flooring will start Monday morning in the kitchen and the kitchen cabinet install should start Tuesday.

The struggle continues with locking down property #4 &5...pretty close on (3) properties as of this morning, just have to see how they shake out.  Really hoping to close on at least one before I leave Texas again in another 10 days.

Property #3 Progress Photos Below

Screen Shot 2018-11-01 at 11.56.05 AM by sam burn, on Flickr

Screen Shot 2018-11-01 at 11.55.20 AM by sam burn, on Flickr

Screen Shot 2018-11-01 at 11.55.12 AM by sam burn, on Flickr

Screen Shot 2018-11-01 at 11.54.57 AM by sam burn, on Flickr

Screen Shot 2018-11-01 at 11.55.47 AM by sam burn, on Flickr

Screen Shot 2018-11-01 at 11.55.40 AM by sam burn, on Flickr

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #120 on: November 05, 2018, 06:40:36 PM »
Update

Property #1 Rented at $1800/mo

Property #2 Rented at $1595/mo

Property #3 Main flooring is nearly complete, bathroom tile starts tomorrow.  Kitchen starts Wednesday.  New exterior doors are on-site.  No other major scope growth.  Neighbors have been coming up and greeting me over the last week, all very excited for what we're doing.  Progress photos below.

Property #4  Woooo!  Finally got #4 under contract, trying like hell to close by the end of this week before I fly out.  The contract is with the title office and they are expediting.  If not this Friday, next week.  It's already been demo'd and dried out, which is great - both my contractor and I are very happy not to have to deal with that process again like we did on property #3.  Rough numbers and photos below:

Purchase Price:  $76k
Estimated Rehab:  $65k
Estimated After Repair Value: $236k ($107 sq ft)
Estimated Monthly Rent:  $2000
Source:  MLS
Funding:  Purchasing cash via personal funds
Schedule:  4 weeks (start date approx. 15-Nov)


Property #3 Progress Photos Below


Screen Shot 2018-11-05 at 3.10.36 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 3.10.48 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 3.10.55 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 3.11.01 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 3.11.08 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 3.11.15 PM by sam burn, on Flickr


Property #4 Below


Screen Shot 2018-11-05 at 6.41.35 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 6.41.43 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 6.41.53 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 6.42.02 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 6.45.56 PM by sam burn, on Flickr

Screen Shot 2018-11-05 at 6.46.04 PM by sam burn, on Flickr
« Last Edit: November 05, 2018, 06:47:20 PM by sammybiker »

Another Reader

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #121 on: November 06, 2018, 07:30:48 AM »
That interior gray in Property #3 is too dark for me.  You may want to lighten it up on the next house. Other than that, looks good!

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #122 on: November 06, 2018, 11:21:11 AM »
Thanks @Another Reader  - it's funny you say that, I've been thinking the same thing and am shopping around for a shade or two lighter.  It's not as dark as the pictures show (poor lighting) but I think it will come together better a shade or two lighter, as you pointed out.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #123 on: November 17, 2018, 10:33:52 AM »
Update

Property #1 Rented at $1800/mo

Property #2 Rented at $1595/mo

Property #3 Just wrapping up the finishing touches with baseboard paint, door knobs, etc.  Both the fridge and the master double vanity were delayed 2 weeks, to be received and installed mid next week.  I hope to have this turned over to property management by the end of next week.

Property #4   Closed last Friday but things slowed down since then.  Still working to lock down the HVAC quote and ran into a little drama pricing out a total electrical rewire of the house - bid came back at $18,000 (lol).  I went with a new electrician that was well referred as this was going to be a little bigger job than just installing new plugs and dropping a few light cans in.  We were about 10-12k apart on price...so back to shopping around. 

Fortunately, my local BP group has a couple of moonlighter electricians and they are out today to assemble the bid.  Back-up plan is another investor's electrician from Houston - talking full rewire, 30+ light cans, plugs,  everything for around $8k.

We'll see what happens with that.  Insulation and drywall should start late next week, just waiting for the garage door to be installed so that we can safely store materials.  The garage door width needs to be modified, so we're working on framing that up come Monday.

A little slower start than I had hoped but once we sort the electrical, the rest of the house will go quickly.

Property #5  Property #5 is now under contract.  This 2400 sq ft cape cod is a time capsule, very similar to Property #2 but in better condition.  I'm working to close it by the end of the year but this is the first property that I'll be performing financing on the front end for, so we'll have to see how that goes.  I'm leasing it back to the owner until May 2019 prior to starting rehab.

Purchase Price:  $150k
Estimated Rehab:  $30k
Estimated After Repair Value: $252k ($105 sq ft)
Estimated Monthly Rent:  $2000
Source:  Off-market
Funding:  Financing w/local credit union.
Schedule:  Unknown.

Property #3 Progress Photos Below

46373917_316893989131081_3335186777022398464_n by sam burn, on Flickr

46426422_256301258400298_3964151232481722368_n by sam burn, on Flickr

46495287_689396998098744_3325478381406912512_n by sam burn, on Flickr

46511265_1298480400295084_80706034674434048_n by sam burn, on Flickr

46458022_726562567710433_728575609025855488_n by sam burn, on Flickr

46361107_498876207298690_9097153062673317888_n by sam burn, on Flickr

46434967_355310805032812_1754261451972804608_n by sam burn, on Flickr

46404125_360358754734952_6625600418359541760_n by sam burn, on Flickr

46519917_278148646170005_88074570761764864_n by sam burn, on Flickr

46395644_2157568407827312_723412169277833216_n by sam burn, on Flickr

Dicey

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #124 on: November 17, 2018, 11:10:06 AM »
While I was out canvassing during the election, I saw a beautifully updated house. They had a similar facade. They had taken long wood slats, stained them and mounted them horizontally with regular spacing in between. It was so simple and packed a huge punch, totally updating the look of the house. I kind of remember where it was. I'll try to find it and post a picture in the next couple of days. IIRC, they treated the garage door the same way and it looked fabulous.

And I hear you on the electrician. Our current flip was 10k, and it was done by a fully certified colleague of DH's. We used 55 cans, and it's a two-story, 2k sf house. And we paid for the materials. Oof. And that was a "deal". Funny/not funny experience. We ran a little short of supplies. Went back to HD four days later, and all the wiring (Romex  CAT5, etc.) had gone up in price by $5. Ugh.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #125 on: November 18, 2018, 04:26:23 PM »
@Dicey  That's a lot of cans!  But that doesn't seem too awful at $10k (labor only).  Was the house stripped to the studs/no drywall or they had to snake all the new wiring through the walls?

Dicey

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #126 on: November 18, 2018, 06:35:42 PM »
@Dicey  That's a lot of cans!  But that doesn't seem too awful at $10k (labor only).  Was the house stripped to the studs/no drywall or they had to snake all the new wiring through the walls?
Walls and ceilings lovingly stripped to the studs by DH and yours truly! This obviously makes things easier and certainly more efficient. Lol, our current clown home was custom built in 2006 (not for us, we bought it on a short sale). It has over 110 cans (2600sf), so 55 seems reasonable in comparison. They're all LEDs and most of them will be on dimmers.

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #127 on: November 19, 2018, 05:20:47 PM »
@Dicey   Wow, now that's a LOT of cans!

New bid today for $11k...so we're working in the right direction but aren't there yet. 

BicycleB

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #128 on: November 19, 2018, 05:55:48 PM »
Update

Property #5  Property #5 is now under contract. 

Wow, 5 properties into the contract stage or beyond. You did not slow down. Wish I could contribute more, but very impressive to watch.

Dicey

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #129 on: November 19, 2018, 06:02:38 PM »
@Dicey   Wow, now that's a LOT of cans!

New bid today for $11k...so we're working in the right direction but aren't there yet.
I've told this story elsewhere, but... we didn't notice the crazy number of cans when we bought the house. When our first utility bill topped $450, we freaked the fuck out. We dashed out and bought the dimmable kind of LEDs 'cause, of course, they're mostly on dimmers. It cost over a thousand bucks! Naturally, within a year, LED prices had dropped like great big rocks, boulders even. Oh, well. The utility bills did go down, so it wasn't a loss, just a much bigger expense than we anticipated.

Now we buy the whole kit at Costco for a fraction of what we paid for the bulbs.

CowboyAndIndian

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #130 on: November 19, 2018, 06:47:23 PM »
PTF.

How did I miss such a great thread?

Doing a great job @sammybiker

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #131 on: November 20, 2018, 08:09:35 AM »
Thanks @Bicycle_B, those last couple of properties came quick. 

@Dicey Yeah, the price drop on the LEDs the last few years has been incredible. Also, do you have a link to the Costco kit, please??

Also, new electrical bids came in at around $6k.

@CowboyAndIndian   Thanks for the feedback!

Dicey

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #132 on: November 20, 2018, 10:06:49 AM »
Don't have a link, I just buy them in the warehouse. It's the bulb and lens kit, you still have to buy the ugly metal box at HD or L for a new installation. What's nice about them is you don't see the inside of the housing from below. I found them for 4.99/2-pack this summer. They are on sale again now, IIRC, but it's not as screaming a deal, and I have all I need, so I didn't register the current deal in my memory bank. They're by Feit, so the quality is good.

Good job on the new bids!

sammybiker

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #133 on: December 01, 2018, 12:50:12 PM »
Update

Property #1 Rented at $1800/mo

Property #2 Rented at $1595/mo

Property #3 Finally done, except for a couple of HVAC grills.  Property management now has possession as of this weekend, appraisal was completed yesterday, I'll know the results next week. Really swinging for $150k but I need my funds back asap so...I probably won't fight a low appraisal.  Final photos below.

Property #4   New garage door installed, some additional drama with the electrical that I'll share later but it's going.  Drywall start won't start for another 10ish days due to electrical delays.  Progress photos below.

Property #5   Title paperwork is in process.  Loan paperwork to be submitted next week.  Then appraisal. 

Property #6  I really didn't want another property but it was hard to turn down the equity capture with this one.  I'll post more details later but the core numbers are below.

Purchase Price:  $65k
Estimated Rehab:  $40k
Estimated After Repair Value: $150K ($86 sq ft)
Estimated Monthly Rent:  $1400
Source:  MLS (Fannie Mae Foreclosure)
Funding:  Financing w/local credit union.
Schedule:  Unknown.

Initial photos shown below.

Property #3 Final Photos Below

Birch1 by sam burn, on Flickr

Birch2 by sam burn, on Flickr

Birch3 by sam burn, on Flickr

Birch4 by sam burn, on Flickr

Birch5 by sam burn, on Flickr

Birch6 by sam burn, on Flickr

Birch7 by sam burn, on Flickr

Birch8 by sam burn, on Flickr

Birch9 by sam burn, on Flickr

Birch10 by sam burn, on Flickr

Birch11 by sam burn, on Flickr

Birch12 by sam burn, on Flickr







Property #4 Progress Photos Below

93136cd60b73640e56555e8f8236d1f7c4729c95-2 by sam burn, on Flickr

93136cd60b73640e56555e8f8236d1f7c4729c95-1 by sam burn, on Flickr

Property #6 Initial Photos Below

ISibcc05k9gftq0000000000 by sam burn, on Flickr

ISek492vqhaowt0000000000 by sam burn, on Flickr

ISadgujnysvuas0000000000 by sam burn, on Flickr

ISaptkiy5d52xt0000000000 by sam burn, on Flickr

ISqpkik079cpas0000000000 by sam burn, on Flickr

ISyrjlm4k2w4wt0000000000 by sam burn, on Flickr

ISmu9u04m473bs0000000000 by sam burn, on Flickr

ISibcwfi8kboxt0000000000 by sam burn, on Flickr

sammybiker

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    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #134 on: December 05, 2018, 10:36:46 AM »
Update

Property #3
  Appraisal came back today $165,000.  I was all-in at $123k, capturing $42k in equity.  I was shooting for $150,000 ($105/sq ft) and I'm obviously happy to see it come in at $115/sq ft.  This project went quite a bit over budget due to a number of factors and I'll make a detailed post breaking down these cost overruns and lessons learned.

​A summary update of this challenge thus far, including some forecast data points.

Property #1 Equity Earned: $83,000 Monthly Cashflow: $250

Property #2
Equity Earned: $42,000 Monthly Cashflow: $375

Property #3
Equity Earned: $42,000 Monthly Cashflow:  $400

Property #4 Equity Earned:  (forecast $92,000)  Monthly Cashflow: (forecast $400)

Property #5 Equity Earned:  (forecast $77,000)  Monthly Cashflow:  (forecast $400)

Property #6 Equity Earned:  (forecast $40,000)  Monthly Cashflow:  (forecast $450)

Equity Earned vs Goal (including forecast): $376,000/$200,000

Monthly Cashflow Earned vs Goal (including forecast): $2275/$1625

Trifele

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #135 on: December 06, 2018, 05:08:27 AM »
Thanks for the summary @sammybiker!  Wow -- huge congrats on such a successful project.  And done in 6 months.  Just -- awe inspiring.

Thank you!   
« Last Edit: December 14, 2018, 02:24:54 AM by Trifele »

sammybiker

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    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #136 on: December 07, 2018, 08:43:43 AM »
Thanks @Trifele it's been a really fun ride and still a lot of work ahead of me to make those forecast numbers a reality.

sammybiker

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    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #137 on: December 13, 2018, 10:28:40 AM »
Update

Property #1 Rented at $1800/mo

Property #2 Rented at $1595/mo

Property #3 Refi complete, funds disbursement today.  On the rental market for $1700/mo as of this weekend.

Property #4   Electrical mostly complete, drywall started.  Paint should start next week and flooring right after that.  Progress photos below.

Property #5   Title paperwork clear.  Bad news from my lender - his boss left the bank last month, new guy coming in is changing things up and going with a far more conservative approach.  They've asked a whole lot more questions about me, my financials and this property.  Still not yet approved but it's looking promising.   However, after this one, I'm cut off from this credit union for about six months. 

Too much, too quickly, for them.  They are a very small bank and my cap was initially set at $1mm (I'm at $550k-ish after this next one).  So onto engaging a new credit union.

Property #6  This one is turning into a pile of crap.  Buying sight unseen is risky and my best hope is that out of 5 houses, I only get 1 really bad one and the 4 others make-up for it.

Finally got inside this one and we have two major roof leaks, errr....holes.  Roof replacement was already captured in my scope of work but I need to now look at full flooring replacement as the original wood floors, which I hoped to use, are rotten in two of the bedrooms and the hallway.  More drywall repair also required.

A couple pictures below that surprisingly weren't included in the listing.  Estimate is still in process but I think I'll be closer to $50k on the rehab, all-in around $115k.  Still making some good equity but not as much as intended and a whole lot more work involved.

Step one is to get a new roof on...pushing to get this going next week.

Property #7  Another deal that I couldn't pass up.  From a local wholesaler and good friend.  Great neighborhood in town, great schools.  Mostly cosmetic - floors, paint, bathrooms and kitchen. Minor siding repairs.

Purchase Price:  $82k
Estimated Rehab:  $30k
Estimated After Repair Value: $153K ($93 sq ft)
Estimated Monthly Rent:  $1600
Source:  Wholesaler
Funding:  Financing w/private lender then refi direct with local credit union.
Schedule:  Start mid-Jan, finish early Feb.

Property #4 Progress Photos

362b299a1d8a150c4a85e82918bf3da0473847a0-1 by sam burn, on Flickr

05b592ccc6fe9296387651925e3e86523b00a8c9-1 by sam burn, on Flickr

af95c143ec0473cfa6e409eec60a49cff09402cc-1 by sam burn, on Flickr

e07c2ea6a72994c484d362403d6955942afbfc37-1 by sam burn, on Flickr

fafc742870ef000f1dea0bed56567f44d8d135d5-1 by sam burn, on Flickr

Property #5 Progress Photos

48218188_554726331620048_1440421255281901568_n by sam burn, on Flickr

48064173_298441734110261_8369637812353368064_n by sam burn, on Flickr

47687918_2028102497282294_7733699773114351616_n by sam burn, on Flickr

Property #6 Progress Photos Below

2 by sam burn, on Flickr

1 by sam burn, on Flickr

Property #7 Photos Below

P1122912 by sam burn, on Flickr

P1122919 by sam burn, on Flickr

P1122925 by sam burn, on Flickr

P1122928 by sam burn, on Flickr

Another Reader

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Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #138 on: December 13, 2018, 01:01:02 PM »
Be careful you don't bite off more than you can chew, as Grandma used to say...

Figure out what (who) went wrong on Property 6 and don't let that happen again.  Good luck with the credit union, and yeah, you need a back up lender.

sammybiker

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    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
« Reply #139 on: December 13, 2018, 02:09:39 PM »
Thanks @Another Reader 

#6 fault was certainly all mine.  There just wasn't time to get an inspection before issuing an aggressive bid.  I'm not super stressed about it as I knew there was enough margin going in if I missed some scope but just not ideal. 

Back-up credit union are folks I established a relationship during July visits and I've kept them updated on my progress.  The relationship is new but very promising and other investor friends in my circle have praised them highly (and offered the personal introduction back in July).  But who knows until the ink is wet!  We'll see.