Unit #1

It was August 2016 and I was looking for another flip.  I text the only wholesaler I know “where the deals at?” during a Friday home happy hour.  My wife and I love a Friday home happy hour.  I have known the guy since childhood and he has been the closest thing to a mentor I have.  He text right me back and said he just got a 2/1 under contract that he would sell for 35k that rents for $900.  I liked the sounds of those numbers and he agreed to give me the weekend to evaluate before he showed it to his other buyers.

The tenant had been there for 3 years and did not want to leave.  Section 8 paid 96% of the rent which is guaranteed in your account on the 1st of every month.  I reached out to a friend that had a few section 8 properties.   His experience with section 8 has been positive and he agreed it looked like a good deal.  I met my buddy/wholesaler for breakfast to sign the contract.  I followed that breakfast up with a round of golf at another friends country club.  The entire day was a small glimpse into a desired lifestyle.

After closing cost I was in the property for 39k.  I set up the automatic deposit with housing authority and we were off.  Installed new kitchen floor and bathroom floor which was under $1000 with labor.  A much needed termite treatment dinged me a little.  Three months in and I am in the process of trying cash out refinance.  I wasn’t aware “cash out refinancing” was a thing a year ago but I just keep listening and reading.  The place still needs a lot of work but I will wait until the current tenant moves to do any significant rehab.

Rental #1 is a bit of a junker.  Rental #1 will not greatly appreciate.  Rental #1 is 2 bedrooms which is not desirable. There are many things Rental #1 it is not but most importantly IT IS A START.  The goal may be large but as the saying goes – How do you eat an elephant?  One bite at a time.

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