Cash out Refi Success

[Jamie O'Connell]

Investment Info:

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

Purchase price: $55,000
Cash invested: $5,000

I purchased a duplex for cash for $55,000. Put another $25,000 cash into it. After filling both units with renters refinanced it with a $100,000 Valuation and walked away with $75,000 out of the $80,000 put into it.

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

One of many different types of ways ive tried to get around putting 25% down and having that money permanently tied up.

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

Through my Realtor.

How did you finance this deal?

Financed 100% of purchase and remodel in cash. Then I cash out refied after 7 months.

How did you add value to the deal?

Bought when it was borderline inhabitable. Put 2 months worth of work into getting it up and livable.

What was the outcome?

Ended up putting $5,000 total "down" in the grand scheme of things. And I ended up making $2,500 a month in profit while I had no loan for about 5 months so really I didn't put anything down.

Lessons learned? Challenges?

Still some restrictions even on cash. Seasoning periods are rough.

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

Absolutely, my Lender Ryan Deasy at Capital Three Sixty has done 5 loans for me, 3 different types and is great.

[Jamie O'Connell]

Quote from @Logan Laperriere:

Great job! That is a fantastic deal! Did you do the rehab yourself or hire a contractor?

 O no. I know my strengths and doing anything construction is beyond any bit of skill I have. I am very lucky I found a great contractor for my first prop and he’s now working on property #4 for me.