$50K Profit + Cash Flow on Three Houses

I have been limping along with my 15 rentals for a while now. I also make good money for a corporation buying and selling electricity nationwide in realtime. It's the adrenaline I like. So I still have my 50hr/week job. I haven't bought a property in 4 years......until this month. I don't know what happened.....I just decided to "try" a sample ad to check response. I woke up one morning a month ago and, on a lark, placed an ad for handymen. I then called an old friend, who was still actively looking at investment houses, for a few addresses. I placed three bids (can you say Low Ball?). All have been accepted. One closed a week ago, another closes in mid October, and the third closes at the end of October. I got 60 responses to my handyman ad. I culled 30. I phone interviewed these a second time and, being the number cruncher I am, categorized them by trade, wages and, most importantly, gut feel. I then held 12 physical interviews and found four I wanted, two of which actually showed up for work. I have since found two more out of the pack for a total of four reliable people out of 60. I need six guys per house (three teams). For the other two, I am using "drop-ins" (you know, the cheap ones you pay once and they are gone). I am $1000 over budget on the first rehab. I should clear $9k after 80% LTV loan (instead of $10k...shucks). The second one should net $15k and the third (oh its sweet...) $25-$30k !!!!! I am paying cash to buy and fix up (loans from my 401K). Then refi for the tax free money. 80% LTV Loans all carried by rents with $100-$200/mo positive cash flow. The total time from start to finish on these three houses will be two months. Ohhhhh what does that come to.....$25k/month....TAX FREE?!! That's right. The last house was unusually sweet. I think it is an anomaly. I do think I can easily clear $10k/mo for $120k/year....and I'm part time. Of course, in a few years, I am gonna have to figure out what to do with all them rentals...what the heck...I'll cross that bridge when it gets here.... I still ain't got the guts to quit the Corp life. We'll see, we'll see. Kent Cheatham [Return to Menu]