Single Family Buy and Hold Deal. How'd I do?

[James Lanier]

Investment Info:

Single-family residence buy & hold investment in Pawtucket.

Purchase price: $243,000
Cash invested: $100,000

Turned a 2 bedroom and 1 bath into a 3 bedroom 2 bath. Renting it for $2,650 and the mortgage is $1453. I plan to cash out refinance in December. Somewhat a modified BRRRR supplemented also by my 9-5 career. I ended up only renting in for $2,650, and after the refinance (getting between $80,00-$100,000 back) my cash flow will decrease to between ($750-$900).

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

I've never invested in a single-family investment property. I wanted to gain the experience of purchasing and managing one.

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

I found the deal walking my dog around the neighborhood. I noticed it as an eyesore and saw it was recently listed for sale through the redfin app. I low balled at 225k with an escalation clause up to 245k.

How did you finance this deal?

I financed the deal with a HELOC that I have from my primary residence and used my W-2 Income/ Credit Cards to finance the renovation.

How did you add value to the deal?

I added a bedroom and bathroom to the property. I also finished the basement. The whole house was updated and modernized.

What was the outcome?

$2,650 for rent. $1,453 mortgage currently. Approximately 100k total spent. Between 80k-100k for the Cash out Refinance.

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

Dolan O' Rourke Real Estate (RI and MA)