2-family student housing BRRRR

[Gaetano Ciambriello]

Renovation Video

Investment Info:

Two family investment buy and hold.

Purchase price: $705,000
Cash invested: $280,000 (between DP and rehab)

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

Had already owned a single family in this market. It was my second purchase. Now have 13 units total.

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

On market deal. Was at the house 22 minutes after it was listed and an offer 25 minutes after that. Appraisal came back at $692k. Had to come to closing w/ bit more cash.

How did you finance this deal?

Conventional financing. 85% LTV

How did you add value to the deal?

Full gut rehab.

What was the outcome?

Short term renters at the moment. YOC of 13%, cash on cash in mid 20s

Lessons learned? Challenges?

Move quick, work directly w/ listing broker. Working with the town was a bit challenging getting approvals and permits because of location of the house and local laws regarding rehab budget as a % of assessed value.

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

AFC Mortgage Group - Licensed in 9 states. Best in the game!