I made $12,000 with the stroke of a pen at closing. The house appraised for $12,000 more than I paid for it adding to my net worth. I made $5,400 after all expenses in pure cash flow.
Here’s how I did it.
When you enter the world of real estate investing you can bring one of three things to the table:
As an active duty service member, I did not have time nor experience. Instead, I leveraged my high savings rate to jump into real estate investing. I was learning through books, podcasts, and networking.
I listened to podcasts with intent. I was listening intently for people who were like me. As a result, I found a high-quality turnkey company. Turnkey investments were attractive because I didn’t have time to manage a rehab nor the experience.
The biggest challenge was finding a turnkey company that has a good reputation. I found hundreds of companies with poor reviews. Most of the time, they would show analysis that omitted expenses such as capital expenditures (download my free guide to learn more) or vacancy.
Enter Storehouse 3:10 Ventures. The owners were both active duty service members who lived the values they tagged on their website. You can hear about them on BiggerPockets Money and The Military Millionaire.
Turnkey is simple:
- Schedule a call
- Get on their buyer’s list
- Review offer and proforma analysis (when your number is called)
- I’ve bought two properties. Both properties were very conservatively underwritten. Storehouse analysis.
- Follow along with the rehab (they handle everything!)
- Work on financing using their recommended lenders
- Review inspection report
- Review appraisal
- Set up your account with their recommended property manager
- Close on house
The details in my turnkey property:
The house was fully rehabbed with a tenant at closing; a true turnkey.
They completed a high-quality rehab and screened tenants to ensure the best fit.
I’ve owned the house for about a year. I track my time spent on real estate. Since the purchase, I’ve spent seven hours on this property.
Let’s dive into the numbers with complete transparency.
I purchased the property for $108,000 with 25% down (my choice).
The property appraised for $120,000
The property rents for $1300 per month.
Here’s how they said it would perform. See their detailed walkthrough here.
Here’s how it performed.
The biggest challenge was the first third-party property management company. Fortunately, Storehouse 3:10 Ventures quickly pivoted to a better company.
If you want to hear more about my experience with Storehouse 3:10 ventures schedule a call and let’s talk.