Latest BRRRR project completed and just signed 2 year lease.

[Eric Prine]

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $175,000
Cash invested: $60,000

We have completed the renovation and are very happy with how it came out. The reno ended up costing about $65,000. We have renters who just signed a new 2 year lease for $2400. We are now working on the cash out refi.

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

it's in a great neighborhood we know well. The house needed a lot of work so we knew we could add a lot of value.

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

I met the seller 4 years ago and was going to try to help him sell it. He inherited it when is sister passed. Unfortunately over the last 4 years he wasn't able to get anything done with it and we finally offered to buy it from him. it still had all of his sisters things and had had squatter break in and live there for a month. They stole the copper before they left. We took it totally as-is so he didn't have to deal with anything.

How did you finance this deal?

it was in just good enough shape to qualify for a conventional loan with 25% down. We financed the renovation with a 0% interest credit card for materials and a heloc for the contractors.

How did you add value to the deal?

We rewired and replumbed, added AC, redid the kitchen, expanded and redid the main bathroom, added a half bath and laundry room. refinished the original wood floors. Basically everything except take it down to the studs.

What was the outcome?

We just signed a renter for a 2 year lease. So far, so good.

Lessons learned? Challenges?

there were hiccups but we rolled with them. we didn't think we'd need to replumb but then we discovered the stack drain pipe was basically rusted into nothing.

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

Mike Tavani of Guaranteed Rate. Best lender in the business.