Demo on Candlewood

The house is bought.  The ideas are brewing, but before a single wall can be painted or a cabinet can be hung all of the unwanted must go. 
 
For demo day, we utilized a 15 yard dumpster which turned out to be too small.  We ordered a second 15 yard dumpster and filled up just as fast as the first. 
 
This particular house came with many “bonuses”:  a couch, sofa, all of the appliances, and a garage full of more unwanted items.  We demolished both bathrooms and the kitchen due to obvious moisture issues.  Not to mention an overwhelming need of an upgrade. 
 
Here is a slide deck of before and after demo photos.

  • Before Reno Kitchen
  • Before Reno
  • Before Reno Living Room
  • Demo Living Room
  • Before Reno Bathroom
  • Before Reno Bedroom
  • Before Reno Master
  • Before Reno Master Bath
  • Before Reno Master Bath


The inside was cluttered as well as the outside.  The outside of the house was surrounded by 5 tall Oak trees that grew within 5 feet of the house.  The proximity created concerns with roots invading the foundation, abundance of moisture from all of the shade and even moss growth on the roof.  We gathered estimates for tree removal as early as the due diligence period knowing the trees had to go.  As an added bonus, our tree service is milling the oak logs into board for future projects.

  • Before Reno Front
  • Before Reno Side
  • Before Reno
  • Before Reno
  • Tree Removal
  • Tree Removal
  • Tree Removal
  • Tree Removal

Getting Started On The First Deal

Whether it’s a podcast, a book, an eager business-minded friend, or your own ambitions, the message seems abundantly clear – “Make the first deal, and don’t give in to the tough times.”

For most aspiring entrepreneurs, making the first deal is more than half the battle. I have found myself hoping for some luck in the form of a great deal to get me off and running, but luck isn’t reliable, dependable and lies outside of anyone’s “sphere of influence.”

Right now, I find myself saving in order to build up reserves and find more ways to leverage money to meet the demands of a 25% down payment and up to 20K in rehab costs. All of this with the BRRRR (Buy, Rehab, Rent, Refi, Repeat) strategy in mind, a means to leverage banks to Refi and push all of those funds back my way for property number 2.

So how do I plan to leverage my own money? Two ways, the first is with a loan on a Thrift Savings Plan (Military speak for 401K) that holds a 2.5% interest rate with a 5 year pay off period. This account has received a steady 6% input over the span of 10 years. The second is with a good ole’ fashion HELOC (Home Equity Line of Credit) on my primary residence. I have nearly 5 years of equity on a VA loan in a neighborhood that provided already up to 50K in appreciation based on the comps locally.

Now for possible deals. It is spring, near a major military installation, so there are more homes on the market than the winter months. The number of foreclosures continue to populate the MLS and my broker continues to encourage me with the comps on properties of interest. For my first deal I am torn between the slow cash flow route of a Single Family Home (SFH) with moderate repairs or a Duplex or a possible Triplex in a less popular area.

For the first deal I am concentrating on the following:

  • Cash Flow (Goal: $300 a month per unit)
  • Appreciation through Rehab/Land Value
  • All-in ARV < 75-85% for Cash Out Refi (After Rehab Value)

In the coming days, I plan to visit 3-5 local banks and compare small-business banking options, escrow services, and mortgage products. Be mindful, that I have a full-time job (not Real Estate related), so everything is orchestrated in my off-time. These engagements will hopefully contribute to my current plan, or educate myself on areas that need improvement in the current business plan. And naturally, a follow-on meeting with my CPA to discuss tax implications, breaks, etc.

I remain in line with my main goals by focusing on establishing systems and relationships with SMEs (Subject Matter Experts): Broker, CPA, Banker. One of the key tasks on my list is to find a solid Real Estate Attorney in order to better understand local laws for contracts, leases, etc.

With each passing week, I reexamine each one of these incremental steps taken. The original plan has seen subtle tweaks, but we are ever so closer to pulling the trigger on our first deal.

Note: This are simple micro steps needed to fulfill my macro goals. Each little task is a micro goal, but these micro goals are well nested with my desired macros.