My third deal, and the one that changed it all.

[Mario Ciccarelli]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $160,000
Cash invested: $10,000

An on market townhome turned cash cow student rental!

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

This deal was on the MLS and at the time I was unlicensed so my rockstar agent locked it down for us.

How did you finance this deal?

This is the third investment I made and the last one where I will be doing the rehab myself. Purchase price was $160,000 and ARV $215,000. I used two other partners who brought the down payment and together we split the closing costs, holding costs, and rehab costs. My total costs are about $10,000 but total rehab was $30,000.

What was the outcome?

We made this a student rental, my third student rental. Now with three student rentals and a substantial amount of equity in all three, I was able to pull a line of credit from a local bank against all of them for a total of $100,000. I'm now using this line to buy 4 more deals at once and this place cash flows $660 after reserves and cap ex. Looking forward to next year. Check out my instagram for the before and after video @mario_is_me

Lessons learned? Challenges?

We learned that doing the work yourself, while a valuable learning experience and good way to build initial equity, is not a viable path to longterm growth.