How to buy a house for 275k and rent it out for $5,000+ a month?  (Short Term Rentals)

This is a Deal Dissection video on a new deal we just closed and it is a Buy and Hold but it is a bit different than most because it will be more than a “2% House” and the price is is 275k.  It is unusual for houses to rent for 2% at such a high price, and that’s the cool part about the deal because this high cash flow is possible by doing short term rentals.  In this class I’ll touch on the the Short Term Rent Models and how we use them for houses like this.

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My mission is to make lifelong friends helping folks around the world create generational wealth with a passive income of $30,000 a month with Indiana real estate (without leaving your house) while we’re also building the world’s largest organization of Special Needs Business Owners and Real Estate Investors.

Make sure go digest the ground breaking material at BigReia.com 

We are creating the world’s clearest instructions to empower any human being on the planet can start from zero and create a passive income of at least $30,000 a month.

Our mission is to make lifelong friends helping folks around the world create generational wealth with Indiana real estate and business building. 

Now for today’s class on paying off rentals in 2-3 years or faster…

Buy a house for 275k and rent it out for $5,000 a month?

Deal Dissection Series: Basil Episode One
Deal Dissection: Where it’s all dissected – the numbers, costs, profits, etc. from A-Z!

Indy Anna explains…
Basil in pics and a walkthrough tour 
The numbers in the deal from start to finish
The unique characteristics that make this a WIN

This is a different kind of deal because there is NOT much work to do.

Now, if you’re a Hero on our Indy Team, you are used to us bringing you deals that require some deferred maintenance or rehab work, from cosmetic to extensive, but to be clear- this isn’t always the case.  Some of our Heroes are doing both Flips and Buy and Holds at the same time, and Azam has done  many of these classes right now, be sure to check those out.

This is just one of these situations in real time, and I’m going to walk you through the numbers on it today.  Quick reminder about the Deal Dissection Series: 

I help out of state real estate investors create a passive income of 10-30k/month…
… without leaving your house.

The Deal Dissection Series is all about taking an actual, real life Indianapolis real estate deal that we are helping and doing for one of our Heroes, an out of state real estate investor.  It helps you see EVERYthing from A-Z, step by step from start to finish – you get a full behind the scenes look at everything the good, bad and ugly warts and all and you can see how REAL deals actually happen in the real world.

We name them F and B – for Flips or Buy and Holds:

– We name each deal and then provide updates on every week’s progress so if you are just joining us you can go back or forward and see how things started and turned out, these are NOT summaries of deals we did, these are all real time deals that we are doing right now so you’ll get to see everything happen in real time from closing to closing
– We will always go over the exact numbers, costs, delays, etc. and the profits and I’ll go over detailed cash flow statements when applicable
– We have other residential, commercial, etc. deals that are Bs and Fs as well, each deal illustrates something specific that you can learn from

Each deal we go over has a specific teaching purpose here’s a cheat sheet on some of our deals, I won’t go over each one for a full list you can go to BigReia.com:

Brooklyn – $50k duplex BRRRR deal
Brenda – $30k SFR flip/BRRRR (not sure yet lol)
Brandon – $70k duplex BRRRR deal (could be 70k flip)
Bryce – $120k Buy/Hold new construction vacant land (New Home Builder Model)
Brianna – $250k Five pack of houses BRRRR deal –
Brock – 100k four-plex BRRRR
Brittany – 50k SFR BRRRR

Fred – $30k SFR Flip
Frank – $25k SFR Flip
Flynn – $200k SFR Flip with vacant land new home builds
Francis – $150k commercial apartment complex flip
Fredo – $40k flip converting a duplex into a SFR
Flavor – $20k SFR Flip to over negative cash flow
Florida – $15k Flip WITH $25k financed

Okay so, as a reminder here are the details on the Basil:

Purchase Price: $279K
Rehab Price: $0
HML Amount:$0
Money Down: $75K
HML Payment: $0
Debt Service: $1800.00
ARV: $280K
Market Rent: $5K+ as AirBnb or assured $3200/mo STR- winter months
Projected Profit/Equity: $1500/mo

Right now we are RENT READY:
– We’ve gone from acquisition to rent in 48hours
– The STRentes move in tomorrow and sign the lease
– Right now you are about to see the pictures and how a deal like this works in Indy

Here’s what we didn’t anticipate happening – the appraisal going wrong at first.

Now to be clear this is NOT a rural property, it’s suburban. Here’s why;
– It’s in a neighborhood
– It’s on city water/sewer
– It’s area is built up over 25%
– There are no ancillary buildings
– The population density per mi is over 40K

What came back on the appraisal report however was ‘rural’- to be clear NO other box checked on the appraisal was any indication of rural, but this was going to kill the deal.

No one on the secondary loan market really wants to get into a rural mortgage apart from a USDA loan, and this was not a USDA loan product. ’   

When we were told how the appraiser marked this- this is when I went into OVERDRIVE.

This appraiser was going to kill this deal and that is NOT how we create wins for our Heroes.

Look, she had already killed it by marking it as rural, so there wasn’t anything I could do to make it worse, right? I called her- and that was an entirely different story as to how I was legally allowed to do so – explain- 

Then, I got ghosted by her. Again, not going to work for me, so I began calling her office in tandem while I was getting written approval from the lender that literally any certified appraiser would work, two hats, one head situation.

Now, we were totally messed over on this deal so it was go time.

We had a back up plan ready to rock with another appraiser and within a two hour window of her either replying to me or not, we were ready to hop in our cars and roll out to this one for a second appraisal- it was ‘go time’. 

In the end however, after calling about every 15 min on the hour, emailing endlessly, and talking to the owner of the small appraisal company she finally stopped ghosting me.

She wasn’t happy with me…

… and told me that a lot lol.  Eventually she said if I could get her another order from the lender for an appraisal revision she would mark it as suburban if she rechecked her facts/figures and she really felt she should do it- as long as I promised to stop calling and emailing about it and it was legit to do so.

So, end of the story, she did change it from rural to suburban and the closing was set. 

I can’t tell you how many people told me it was pretty unheard of to sway an appraiser to change their mind on something. A big part of this- well the only logical reason was ego. Young, fresh licensee and when you’re dealing with the average age of appraisers in America of 50 and retiring, this is it- not a huge pool to pick from.  

This is why it’s CRUCIAL to have a solid team like ours here in Indy.

We are so incredibly grateful for each member- including our appraisers we can recommend to lenders when the situation calls for it.

Oh, lol, if you’re wondering how we are getting this rent ready so quickly- basically as the ink dried- well inspection came back that there were a few items that really were passable, but not done by professionals in repair. 

We didn’t go back and forth on this, simply made a counter asking in lieu of money for repairs or a lower price point, we countered with them leaving the beds, couch, butcher’s block. Pots, pans etc. so it’s now fully furnished and they took it.

So in summary in this Deal Dissection Episode we covered: 
– We’ve covered the numbers in the deal
– We’ve covered the walkthrough tour and RENT
– AND we’ve told you about how we SAVED this deal

So you’ve seen the entire story on Basil for now, this is a good piece to add to the Passive Income Portfolio. Deals like this require a good team that is always marketing for RENTERS to spot arbitrage opportunities with the RoomMate Model, The Executive Model or the Short Term Rental Models.

As always if you have any questions or if you want to see if you’re a good fit to do deals like this and create passive income of $30,000 a month over the next 3-5 years, then you should have at least 100k and good healthy income to start with. 

If you want to talk more about that and see if you’re a good fit just text me at: 317-969-5619

Upcoming we’ve got our always free printable download and the adventures of our BigREIA friends. If you want to do deals like this here in Indy, we can set up a time to chat and see if we’re a good fit to work together- make sure you go to BigReia.com and get the most complete training in the world on creating passive income of $10,000 – $30,000 a month, go there and you’ll…

Make the Universe Smile.  = )

Want more (brilliantly) EPIC posts of real estate investing and bidness badasssery...?

There is a great post and class on the 38 Ways to Buy Apartment Buildings Zero Down with Pet Policies, and here are some other helpful and EPIC posts... for starters as a real estate investor if you ever want to build a business that makes you 30 grand a month then you MUST do this...

There's also a great class Azam did on how anybody can retire in the next 1-2 years with $30,000 a month in passive income by buying and selling businesses zero down.  What about Micro Flipping?  We have a great class on how to start micro-flipping real estate zero down from your house and make $500/day, speed wholesaling 101.

There’s also another great class on how to buy apartment buildings zero down that you can check out as well.  This relates directly to growing income on rental properties.  Speaking of which make sure to check out our epic page on 14 ways to avoid tenants from hell.  Also we have a great post on how to make build a "six figure a month" real estate wholesaling business.

Also here is a post on how I did this and I flipped a house off Zillow for 30.  Also you can check out the post on five steps to flip a house right off Zillow for 40 grand.  You can also check out our other epic post on 57 ways to make money with vacant land.

Here’s another post on how a Hero flipped a house off Zillow and made 40k in a few weeks while he was learning to read.  Also you want to check our post on the EPIC $25 million letter and the copy writing lessons for real estate investors, you'll love it.  Also you can see how ONE letter is making me $9,000 a month.  Also you can check out the post on 101 FREE places to advertise your houses.

Also check out the "SA" class and your REAL chances of create social mobility and income ascension with your real estate business.  Brilliant stuff.  Also there is a great post on the ONLY way you'll ever make 30 grand a month as a real estate investor and/or business builder.  Another brilliant class with a free downloadable Investor Guide is about 19 Ways to Make $10,000 a Month by Helping Tired Landlords.

Plus make sure you check out Azam's post on how to hire a realtor that makes you $10,000 a month... while you sit back with your shoes kicked up on your desk and fingers folded behind your head.  Also there is a great post on how to make five grand a week from putting out signs.

Also we have some great posts on 30 ways to buy real estate with no money down.  That is a two part series so make sure to watch the second part on the 30 ways to buy real estate zero down and with no loans or credit.  I also get questions about our "Epic Flipping" and how to turn $1 into over $25,000 by flipping ordinary items for exponentially high ROI.

And don’t forget our EPIC page on 100 FREE ways to find motivated sellers, we are making the number one page in the world on FREE ways of finding motivated sellers.  Also check out how I find motivated sellers from code violation properties, and also how I make over $1,500 a week giving investors access to that list.  Speaking of lists, for a list of the "Good People" and My Indy Anna Homeys you can go to our People Page at https://www.BigReia.com/people.

You can also get a LONG list of every contract, piece of paperwork and legal document that you'll EVER need for your real estate business all FREE to download: https://www.BigReia.com/Contracts.

Also perhaps the most important class Azam has done is on the "Frequency of Thought" and how to use the laws of quantum physics to rewire your brain, attract brilliance like a lightning rod and be the best version of yourself.  Check out this epic 3-hour class on Quantum Real Estate.

Go to BigReia.com and you’ll become allergic to being an LC and addicted to improving the world and creating Social Mobility for you and yours… 

Thanks so much!  = )

Make the Universe Smile.

~ Indy Anna
Love (at) BigReia.com
317-969-5619 (YES that's my actual Direct Line and I really do answer lol, so please text me first Thx!)

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100 FREE ways to find motivated sellers.