2417 W Burnham St. Milwaukee WI

[Tiffany Drahonovsky]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,000
Cash invested: $52,000
Sale price: $66,000

Bought single fam with tenant in place from the investing company I worked for. Paid them a $5K fee. I raised the rent and used hard money. I had no idea it would be so hard to refi a property at $50K value. I couldn't get it done. First seasoning, then amount. I tried to refi it into a commercial loan with another SFR of same value and that was difficult. I sold it, fast and easy to a friend/agent/investor. 22% ROI owning it 9 months.

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

This fit my buy box: under 1000 sqft, single fam, near southside of Milwaukee, 3 bedrooms, happy tenant in place wanting to stay that pays.

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

I was trying to wholesale it for my company. Couldn't move it with their fee on there, so I grabbed it. I paid them a minimum fee.

How did you finance this deal?

I used hard money from a local hard money lender that I know personally.

How did you add value to the deal?

All I did was raise the rent on this one and handle small repairs due to the difficulty I had refinancing it. Also hard to repair or update with tenants in place.

What was the outcome?

22% ROI in 9 months. Market timing was all this was, and buying well.

Lessons learned? Challenges?

Revised my buy box due to this bugger. I will need to buy more expensive assets or assets without tenants in place or assets with more upside if I need to refi as part of my strategy.

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

Mach 1 Lending.