Another Great Week of Real Estate - March 5, 2024
Loft Leased: Lease signed at $1099 and a two year lease (fingers crossed). That takes monthly profit to $850 and 10% return on investment.
This is drastically worse than I originally anticipated but "Sometimes you get got, but make sure you get more than you get got."
EMMY TIP: The best time to lower rent to fill a vacancy was last month.
Title Company Networking: I saw @CaseyMericle's post on X a week ago and put it on my to-do list to call my local title company. I have a decent rapport since it's a small town, and I've done 3-4x deals with them over the past 2 years.
In the 6 minute call, I learned:
Single-family transactions just picked up.
Land deals remain steady at 3x per month.
Commercial deals have essentially ceased.
None of that is earth-shattering, but most importantly, my contact told me to call them back in a month to chat again.
EMMY TIP: If you aren't using a CRM, just set a calendar reminder to follow up with important contacts.
Newest Purchase: Our previous contractor found this property about a year ago. We went under contract last month with a 90-day close, and since then, I've been trying to nail down our renovation costs. The home's been vacant for 10 years and will be a short sale.
Here's the "Back of the Napkin" analysis:
Purchase Price: $32,000 (my cash)
Renovation: $77,000 (investor or bank)
After Repair Value: $150,000-200,000
Rent: $1300-1500
Scenario 1: Rental
Expenses after cash-out refinance @ 8% (Mortgage, Taxes, Insurance, Property Management, 7% savings): $ 1275
Cashflow: $125
ROI: Infinite since I would get all my investment back
Scenario 2: Sell
Sales Expenses (8% to be conservative): $12000
Profit: $29,000
EMMY TIP: Being conservative might lead to less deals, but it will also lead to less bad deals.
