Winter Park FL B&H Update

[Hilary Stalder]

Investment Info:

Single-family residence buy & hold investment in Winter Park.

Purchase price: $300,000
Cash invested: $65,000

3/2, 1850 SF single-family in A location with A schools in Winter Park, FL 32789. Partnered with in-laws on this project.
Rental Price: $3500/month (we were SHOOK! Only expecting $2500)
Total Renovation Price: $90,000 (over by $10k expected)
Cash Flow/Month: $1200 (Inlaws refinanced loan creating a higher monthly cost, still gave us a healthy cash flow)
COC Return: 13%

Jan 2022 - closing on refi any day to pull out capital. Right now house is worth about $650k. Pay off const loan and reinvest

What made you interested in investing in this type of deal?

Long term wealth building.

How did you find this deal and how did you negotiate it?

My husband's father's friend passed away and his daughter lived out of state. The house was going to disarray (see photos) so he reached out to the daughter to see if she would want to sell. She did so he got the property for an excellent price. My husband's parents partnered with us on this deal and invested $80k. My husband and I put in the sweat equity and renovated the house. We went slightly over budget (10k) so we paid for that.

How did you finance this deal?

Originally seller financing with a balloon payment within 5 years. It has sense been refinanced and we plan to do another refi now that the renovation is complete and our rental price is wayyyyy more than expected.

How did you add value to the deal?

RENOVATIONS! See photos...

What was the outcome?

We rented for WAY more than expected. Rental rates went WAY up from when we started this project to when we ended, PLUS property values went WAYYY up. We are currently working on a refi to pull out some equity and re-invest in our next deal.

Lessons learned? Challenges?

Renovation costs were more than expected. The property was refinanced before we would have refinanced it as well leading to unnecessary closing costs. We will make sure we write out the financing plan next time before moving forward.

We're also splitting the cash flow every month. It would have been better if we could have agreed to a set % return. Maybe the next deal!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself! I listed the property on the MLS and leased it. Everything else was off market.