Andy Webster set a goal of buying 10 houses by the time his son, Montana, was 10… and he achieved that goal this year!
Andy takes us on a tour of his 6th investment property, a 3 bedroom, 2 bath, 2 car garage home with over $50,000 in equity and $275 a month in cashflow.
All In
Purchase Price: $114,000
Rehab: $7,000
Closing: $2,000
All In: $123,000
Equity
ARV: $175,000
All In: $123,000
Equity: $52,000
Out of Pocket
1st Closing: -$123,000
2nd Closing: +120,000
Out of Pocket: $3,000
Return on Investment
Out of Pocket: $3,000
Equity Capture: $52,000
ROI: 1,700%
Cashflow
Rent: $1,600/mo
Expenses: $1,325/mo
Cashflow: $275
Portfolio
Equity Capture: $250,000
Cashflow: $2,000
Popularity: 3% [?]
Great job Andy! Keep it up!
That’s awesome equity capture Andy! What a return! Great job!
You made it to 10 after all. I know you were worried about getting the 10th contract. Good job. Way to be a leader for Montana. Great example.
How many properties did you own before you joined Lifestyles 1 1/2 years ago? Have the deals gotten better since becoming a member? Great job on the video and your investments.
Thanks Natalie, Actually we now have #11 under contract and set to close in a few weeks. I hope Montana is learning by my example!
Steven: Prior to joining Lifestyles I had 5 properties. The deals have become better because I’m using the Lifestyle roadmap! Thanks for the positive support.
Andy W
I’m not sure if I buy this story because why would he have $3000 in the deal if it’s worth 175k. Why not get all of your money out and have ZERO in the deal. He’s at 70% LTV and could have easily been had ZERO in the deal if it was really worth 175k.
Miguel: I asked the lender to finance 120K because that’s about what I had in it at the time and really wasn’t interested in borrowing more than I needed to pay off the line of credit I used to purchase it for cash. Being on the higher end for rentals I preffered to keep my note a little lower and cashflow a little more. If I could only have 3K tied up in each house and capture 52K equity I’d be thrilled.
It can be done.!!! My wife and myself started buying homes in our neighborhood cheep and re doing them ourselfs now we have 6 on our street. We use the postive cash flow to pay off the notes now we have 72K extra coming in to add to our retirement income. Use my 401 K plan to but the last 3 and now we are fixed for a good life. reitred. Reant are going up , what we rent for 1K in 3 to 7 years will be 1200 to 1500 per month. Garenteed to keep up with increes of coct of living. We now make more than when we were both wotking. I love my 4 hour a mouth work time frame. Keep up the good work, real estate is the way to go. I listen to you radio program here in San Antonio TX. I have mintered others in the feild since then. You can’t get ritch quick but with good Biz. since you can reach your golds. We did not ever have to look beyound our own street.
Jerr and Mollie McCraw.