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Updated over 1 year ago,
First BRRR that was a House Hack! How I got started in RE
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
- Alan Asriants
- [email protected]
- 267-767-0111