Sicklerville Townhouse Buy & Hold

[Mike Bonadies]

Investment Info:

Single-family residence buy & hold investment in Sicklerville.

Purchase price: $39,500
Cash invested: $15,000

The Deal: A massive 1 bd/1.5Ba in Sicklerville. The previous owner was a tax lien investor and landlord. He initially got the property though tax liens but held it for a few years later after he foreclosed on the previous owner. After a recent tenant turnover he wanted to sell it fast to person who how to close with little headaches.

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

What Made It Interesting: Its a huge 1 bd townhouse (960 sqft) which is not the run-of-the-mill rental. Because of its size we thought it was undervalued and we knew we could get a nice premium rent.

How did you finance this deal?

The Financials: We used true private money to pay for the purchase of the property. A friend who wanted to have his money work for him but didn't have the time or knowledge to do so. We ended up getting a 5% loan amortized over 30 years with a 3 year balloon. The rehab was paid for by myself and two of my other business partners and this was approximately $15,000 (including holding costs). The ARV is comfortably 65k but has the ability to push as much as 75k. The property's net cashflow is $390.