Acquisition:

• List Price: $125,000

• Purchase Price: $109,000.00 ($112,500 minus $3,500 negotiated after inspection)

• Closing Costs: $1,317.75

• Home Inspection: $425

• Annual Taxes: $1,636.72

• Home Insurance : $512.28 (yearly)

• Rehab: $13,059.87

• Closing cost for 1st refinance: $887.31

• Closing cost for 2nd refinance: $3,346.01)

• Holding cost: $ 3,353.84 (Includes HELOC Interest only payments,Taxes,Insurance , & Utilities)

Total Cost:

• Total Cash Invested: $131,389.78 (plus 3.5 months of blood, sweat ,and sacrifices)

• 2nd Refinance Mortgage Loan Amount: $139,250

Total money invested after cash out refinance: -$ 7.860.22 (beginners luck, and market appreciation)

After we refinanced the first time, we left almost 40k of our capital investment in the property. That is why we refinanced a 2nd time in a year, to pull more of our capital investment out. It worked out way better than expected cause the property appraised $42,000 more than the first bank appraisal!

Property Monthly Expenses:

Fixed Expenses:

• Home Mortgage: $607.11

• Property Taxes: $137.18

• Home Insurance: $42.69

• Utilities: $0

Total Fixed Expenses: $786.98

Expenses For Reserves:

• 3% Vacancy: $41

  • This property rented easily in the first week of listing it, to amazing tenants! Eventually it will have some vacancy

• 6% Maintenance and Repairs: $82

  • Maintenance and repairs cover things like plumbing leaks, dishwashers, faucets, smaller ticket items.

• 6% Cap Expenditures: $82

  • Capital Expenditures cover big ticket items like replacing the roof,HVAC, water heater, and other things that will break over time.

Total Reserve Expenses: $205

Total For ALL Expenses: $991.98

Income:

• Monthly Rent: $1,375

  • $1,375 (Income) – $991.98 (Total Expenses) = $383.02

• Monthly Cash Flow: $383.02

• Cash on Cash ROI: infinity %

• Annual Cash Flow: $4,596.24

Kyle's Point of View:

I did all the rehab work myself except for some electrical and plumbing:

• An electrician updated the electric panel, added a few new outlets for the electric fireplace and an over the range microwave, GFCIs, and ceiling lights.

• A plumber fixed a leak in the main water line, replaced the outside faucet, and reinstalled the water heater.

I initially estimated doing this rehab in 1 month-- easily. Seemed like mostly cosmetic work.

It took over 3 months of working there almost every day, 10+ hours a day, 7 days a week, with my wife helping when she could after work and on weekends.

There were a lot of ups and downs during the process. It was really a character and confidence building experience.

• The highest moment was seeing how, after being listed for just one week, so many people wanted to live in this "Home" we'd created with our own hands.

• The lowest moment was me sleeping on the cold floor with only a blanket and a pillow-- when I had the flu!!-- trying to hurry up and finish because I felt so behind schedule. My back hurt, but I still had to hunch over cabinet doors to paint them. I was shivering at night on the floor and just feeling an overwhelming pressure to do it better and faster.

Needless to say, things did not go as planned. It took way longer, was so much harder than I thought, things were super stressful.... and I couldn't wait to do it again! Next time I will do even better!!!!!!

We love this property!!! Not just because it's a good investment, it was actually a home we would want to live in. We are proud to own it!

We had a lot of failures that turned into learning lessons, a lot of triumphs that turned into confidence, and a lot of challenges that turned into determination.

Thank you "Wallpaper House" for all the lessons you have taught us.

P.S. We spent 5 full days just removing all the wallpaper (it was grueling)