Hello Team,
Our last update was July 26th. Here’s what has happened since:
We closed on a new rental: June 12th, 2017
Location: 115 Mattox St. in Wendell, NC 27591
Purchase Price: $103K
Rehab Cost: $35K
Closing Cost: $2K
ARV (After Repair Value): $186K
Equity Gain: $46K
Bonus Equity Gain for creation of a vacant lot: $25K
Estimated Cash Flow at Refinance: $300-$390
Length of Rehab: 5 weeks
Length of Time from Purchase to New Tenants: 8 weeks
Amount Borrowed: $130K
Money Source: Private Lender $130K, Personal $10K
Exit strategy: hold as a rental and refinance to a 30 year mortgage in 12 months to pay back our private lender.
The rehab of $35K was $10K more than we expected, as we found the front wooden porch support post and beams to be rotten, did extra painting outside, extra landscaping, and other upgrades. The neighborhood is a buzz with compliments.
We had one open house and awarded the home to a new tenant the very next day for $1350/mo. Our new oil well is now pumping.
Bonus Equity:
This property used to be two lots and our goal is to re-divide the lot into two and to build a small cute cottage to keep as a rental. For $2-3K we will have a buildable lot worth $25-$30K. So far, we are under budget for the lot clearing and running natural gas lines to the new home.
In baseball terms: we hit a home run. We don’t always hit a home run, but it feels good to hit one.
Whether we run over or under budget, your money invested and interest payments remain constant. We use our own funds to pay overages, if they occur.
Thanks to you all! Please continue to pray for our success and wisdom with our investing. 2017 continues to be very profitable.
To our mutual success, John & Jeanne