BUY: We bought this property off-market using our own Cash.
RENOVATE: We did a full gut renovation of this property. We replaced the electrical, plumbing, roof, windows, installed new kitchens, bathrooms, carpet, paint, etc. The renovations took longer than expected, but after almost 12 months, we are almost at the finish line. One of the drawbacks of investing out of state is finding reliable contractors. Another challenge is managing the renovations from out of state.
RENT: In this video we’re interviewing a potential property manager. When you invest and own properties out of state, having a great property manager is critical to your success. The neighborhood where this particular property is located is transitioning, we speak a little about how some property managers were not willing to manage a property in this neighborhood. The ones who do will benefit.
REFINANCE: Once the renovations are complete, we will refinance into a long term mortgage.
REPEAT!
Here’s the rough numbers on this one:
Purchase price: $50,000
Rehab: $50,000
Closing & Holding costs: $15,000
Rent: $650/unit x 4 units = $2,600/mo
Est appraised value after rehab: $240,000
Refinance at 70% of LTV: $168,000
Mortgage after refinance: $1200/mo
Gross cash flow: $1000-1400/mo
Investing in multifamily real estate out of state is not for the faint of heart. But like anything else it’s doable.
Stay tuned for future updates on this property once it’s rented and stabilized.
We’re already in the process of purchasing our next 12 units in Cleveland. Our target is to build a portfolio of hundreds of units in this market. Stay tuned, if you blink you might miss it!
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To learn more about How to Build a 7-Figure Real Estate Investing business, and generate 10-20 deals/month using a predictable system for Wholesalers, Real Estate Investors & Agents. Go to https://www.drivingfordollarscourse.com/
AirBnb/Short Term Rental guide, https://www.mystrguide.com/sales-page1588004139396
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