Second Investment Property

[Shivam Patel]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $275,000
Cash invested: $50,000

This was a BRRRR property. I have put in a lot of capital to build equity into this home to make sure it is in good rental condition. I was able to house hack Unit A 3Br 2Ba unit and rent out Unit B for $1650. When my roomates and I move out from the Unit A, I will rent Unit A for $2200.

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

I was invested because it is 2 mins from the mall, there is property management closeby, and had a lot of cashflow potential. I wanted to also learn to flip myself and there was hidden equity.

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

I found this deal through my realtor, Greg D'Amico. Greg works extremely hard and highly recommend him if you are in the south jersey area. Let me know if you need to reach out to him.

How did you finance this deal?

I financed this deal through GetARate. I used FHA financing and moved into the property and slow rehabbed the property.

How did you add value to the deal?

This property needed a LOT of work. I learned how to do plumbing, carpetting, sanding, painting, demolision, woodwork, basic HVAC, installation of appliances, and basic electrical work. I hired out some things like fixing gutters, adding a basement door, refinishing the driveway, major electrical work, major plumbing work.

What was the outcome?

We were able to rent out the secondary unit and finish the Flip. We are now house hacking and renting.

Lessons learned? Challenges?

Contractors quit midway, Citations were given from the municipality, Seller took 2 months to close the deal with $12,000 of my own money invested prior to closing. Interest rates went up at the end of closing, and monthly amount went up by $600/month last minute due to the change in market. We were able to cashflow but unable to complete the BRRR by pulling equity out.

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

Ileana Mejia, my Lender from GetARate
Greg D'Amico, my realtor from south Jersey