Unit #4

Unit #4 was purchased off market and needed moderate work.  I pretty big single in a sub par school district but the numbers made sense.  This was the 1st successful BRRR strategy we were able to complete.  Purchased for 65k and put 25k into the property.  Appraised for 142k and cashed out 70% LTV.  We have a 30 year mortgage for $99,400.  We got it rented 1/6/18 for $1500/month with PITI(principal, interest, taxes, insurance) being $1138/month.

Lesson Learned

On 1/2/18 I walked through the property to make sure ready for new tenant to move in.  I walk in to find the place frozen solid and all 8 radiators cracked and split.  I literally felt ill when I saw this disaster.  The oil ran out over the weekend and we had temps go down to 0 at night with highs in the low teens.  I am thankful I have a great plumber that was able to source radiators and get it fixed in a couple days so tenant could move in.  That will make this property a loss for the year.  It can happen that easy.  Needless to say we will be checking oil levels more frequently going forward.

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