SFH BRRRR at the University of Dayton (60 miles away!!!)

[Alfath Ahmed]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $100,000
Cash invested: $40,000

This SFH is in a prominent location in the heart of Dayton off-campus of University of Dayton. This was my first cosmetic rehab. I bought the property below market price using a HML.

PP: $100K + $3k (double close)
Down payment: $38k
Hard-money for purchase: $65k
Hard-money Line of Credit for Rehab: $30k but utilized on $10k and funded the rest
All in: $138k

 If Appraisal @$170k @ 25% LTV: ($10,500) in deal
 If Appraisal @$180k @ 25% LTV: ($3,000) in deal
 Gross Rents: $1500

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

I wanted to do a minor cosmetic remodel before taking on large full-gut jobs.

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

Wholesaler

How did you finance this deal?

$38k cash out of pocket and funded the rest through a hard-money lender.

How did you add value to the deal?

2-week remodel created nearly $30k-$40k in equity. I will know the full amount once I refinance.

Lessons learned? Challenges?

1. Always vet contractors.
2. The rehab will almost always go overbudget
3. Keep your contractors accountable & on-time.
4. Buy the property undervalued. No exceptions. If the numbers work they work or else they don't.