BRRRR Testimony Part III

[Brian Tome]

We bought this 2 bedroom 2 bath townhouse in North East, Maryland from the estate of an investor for $80K in December 2019. It was in need of a complete rehab and we put another $30K into it before renting it to a nice young family in May 2019 (took us too long, but we bought 4 at the same time and we worked through them one at a time). After renovation appraised value was $143.5K and we took $38K back out leaving the property to cash flow about $200/month on a 15 year note. Original tenants take excellent care of the property and are planning to renew on a two year lease with a 5% bump (and assume the lawn care costs) come May of this year.

Fast forward almost two years and the house appraised for $177K. After we refinance and put it on a 30 year note, it will cash flow about $400/month, put $25K cash in our pocket (to reinvest), and we will still have $43K in equity in a property that we originally got $8K back to buy - not to mention the tax benefits we gain from depreciation.

This is why I love real estate. It isn't easy or risk free, but it has been a blessing to us.

If you are in the Maryland, Delaware, Pennsylvania area, reach out so we can talk. These deals are plentiful around the I-95 corridor through the tristate area.