Ever wondered what it takes to turn a struggling property into a profitable investment? In the past 60 days, I’ve been busy with several exciting real estate deals. From acquiring a four-unit apartment complex to renovating single-family homes and tackling a burnout house, I’ll walk you through the specifics of each project. This blog post covers the strategies, financial details, and outcomes of these investments. If you’re interested in real estate investing or looking to partner up, you’ll find valuable insights here!
Four Unit Apartment Complex
I’ll start with the first deal, which is a four-unit apartment complex. I’d say this is the least deal of all the deals from the last month, but it was a very strategic buy. This property is on Main Street in the market that I invest in, and it is fully occupied. This property was for sale by the owner, and the owner agreed to owner finance. The property consists of four apartments that are fully occupied, bringing in a total rent of $2800 per month.
The taxes on the property are about $1800 per year, and my insurance company agreed to insure it for $127 per month. The purchase price of the property was $240,000, and the seller was willing to carry the financing with a $20,000 down payment. We’ve taken control of this property, and it’s a very strategic property on a main corner in the city. We solved the owner’s problem by taking over management, tax responsibilities, and insurance responsibilities. The deed is changed, and he got $20,000 cash to know we were serious.
Single Family House
Deal number two was a single-family house. It’s a three-bedroom, one-bath house about 40 miles outside of our market. We had a lady who was about to lose the house to a tax sale. The house’s after-repair value is right at $72,000, and we agreed to buy it from her for $27,000. A wholesaler brought me this deal, so the wholesaler got about $750. We’ve repaired the house in about three weeks, and our all-in cost is now $39,000. Again, the after-repair value is $72,000.
Burnout House
Our next deal was a burnout house. Our insurance company actually called us and told us that this guy might want to sell this property. We bought the house for $10,000 and are wrapping up renovations this week. We’ve put in right at $42,000. That includes a new AC unit, new interior, repairing a roof that had taken quite a bit of damage in the burnout, repairing electrical, painting the outside, and installing new windows inside and out. So, all in, that project is $52,000, and the ARV on that house is about $77,000.
Three-Bedroom, One-Bath House
Another deal we’re finishing up this week is a three-bedroom, one-bath house about 20 miles outside of my market. This was a Facebook post. A guy posted the house to Facebook, and we offered to buy it from him. The house needed some work, so we bought it for $27,000 and put in $6,000 for repairs like getting the central unit up, painting, and doing some good repairs that a tenant would expect. That house should rent for $650 per month. It’s a solid play because it also has a space out front for a mobile home, which is not there right now, but the pad, electrical, and plumbing are already done. We plan to use the money to get more income from that property.
Triplex and Single Family Houses
I’ve had three other properties closing at the end of the month. One is a triplex with a purchase price of $30,000. I got it from a wholesaler who is being paid $5,000 on top of that. A private lender is financing the deal and receiving $5,000 to fund the entire project as a flat fee. This triplex’s initial income should be $600 per unit, totaling $1,800 per month. The total renovations are estimated at $60,000, so we’ll have $90,000 into this triplex. It’ll have new guts, new floors, new plumbing, new HVAC systems, new outside paint, and new roofs, and will be in very good condition for a long time. It’s also in an area where we own other property, making it convenient for upkeep.
Foreclosures
I’m also purchasing two single-family houses at the end of the month, both foreclosures bought back by a bank from a guy who got sick and couldn’t maintain them. He tried to sell them to me a few months ago, but we couldn’t agree on the purchase price. House number one has a purchase price of $42,000, needs about $10,000 in repairs, and should rent for $1,000 monthly. The second house has two rentable buildings on it, with an eventual income of around $1,200 a month. We’ll have about $65,000 into that project once it’s all said and done.
Wrapping Up
I’m keeping my renovation team busy and focusing on acquisitions while trying to shift property management to a team I’m building. If you have suggestions or questions about this, please email me at [email protected]. We’re refinancing these properties as they’re completed with small community banks and renting them out to start generating monthly income.
As you can tell, we’ve been quite busy in the last 60 days and plan to continue being busy at Grab the Map Properties. It’s exciting to work with a team that understands the vision and to grow that team into something better. I always love talking to other investors, so reach out to me at [email protected]. You’ve been listening to the Grab the Map podcast, where we don’t just look at it, we grab the map.
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