S 4th St, Columbia PA

[Tyler Deck]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $35,000
Cash invested: $3,500

Purchased for $35,000 with $5,000 down and a $35,000 hard money loan to cover the rehab costs. After a month of minor rehab, the property was handed to a property management company, and refinanced doing a cash out refiance at a local community bank before the property was even rented. The property appraised for $77,000 but the bank could only do a 65% LTV. This leaves a PITI of around $577 and a net cashflow of just over $200. Initially an investment of around $10,000 in rehab and closing costs. Less than 2 months later and I have all my money back plus a few hundred dollars and a cash flowing rental property!

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

This was my first time using hard money!

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

The mother of a friend of mine passed away and the children didn't want to keep the property.

How did you finance this deal?

Hard Money. My terms were $5,000 at closing toward the principal, 2% points at closing, and 12% interest deferred for 6 months.

How did you add value to the deal?

The bathroom needed a new floor, new drywall, and new toilet. The home also needed some appliances and a good cleaning!

What was the outcome?

Refianced out of the hard money loan, and currently netting a little over $200 per month with property management in place.

Lessons learned? Challenges?

Be prepared for your refinance.

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

Loan Ranger LLC- My Lender!