Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 1 year ago,

User Stats

1,270
Posts
842
Votes
Alan Asriants
Agent
  • Real Estate Agent
  • Philadelphia, PA
842
Votes |
1,270
Posts

First BRRR that was a House Hack! How I got started in RE

Alan Asriants
Agent
  • Real Estate Agent
  • Philadelphia, PA
Posted

Investment Info:

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

Purchase price: $210,000
Cash invested: $180,000

This was my first house hack and. my first deal. I used FHA 5% down to purchase this property. During my first year of living there I did a major renovation that cost almost $180,000 to complete. After completion, I moved out, rented out the property and did a cash out refinance. Was able to pull out 75% of my new ARV of $425,000 (Should be worth closer to 500-550 now). With the refinance, I pulled out roughly 90k. Total investment - about 108k - 24% CoC

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

Was looking to get my first investment. As an agent at the time I was showing properties to clients but also looking at deals myself. Showed this to my clients who were not interested in the property. Ended up running the numbers and securing the deal!

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

Was on a showing with my clients who were not interested in the listing! Negotiated it with the agent directly and represented myself on the transaction

How did you finance this deal?

Using 5% FHA. Needed to make some lender repairs to qualify the property.

How did you add value to the deal?

Full renovation to all units. New utilities, roof, siding, windows, etc..

What was the outcome?

After completion, I moved out, rented out the property and did a cash out refinance. Was able to pull out 75% of my new ARV of $425,000 (Should be worth closer to 500-550 now). With the refinance, I pulled out roughly 90k. Total investment - about 108k - 24% CoC

Lessons learned? Challenges?

YES! Do not panic! It was very overwhelming doing such a large scale renovation as a first project. Contractors lied, things were done incorrectly that ended up costing more to fix. Learn to deal with stress, but most importantly find a good mentor/friend that can calm you down when it feels like everything is hitting the fan

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

I was the agent, happy to help other investors on these types of deals!
Lender - Steve Shvrastman (First FUNDING GROUP)
TITLE - ALPERT ABSTRACT LLC

business profile image
Alan Asriants - New Century Real Estate
5.0 stars
59 Reviews

Loading replies...