Buy, Rehab, Rent, Refinance, Repeat

[Quentin McNew]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,450
Cash invested: $29,000

Purchase: $68,450
Rehab: $29,000
All in: $97,450
ARV: $144,000
Financed: $115,200
Rents: $1200+
Annualized return: Infinite Return

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

It was located in my hometown and had great bed to bath ratio. 3 bedrooms and 2 bathrooms appeals to owner occupied audience and investors.

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

Reached out to a Craigslist post when recognized the price was low for the town it was in.

How did you finance this deal?

Private money paying 4 points and 11% interest

How did you add value to the deal?

Added back deck, busted out wall to install Pella sliding glass door, new vinyl plank flooring, new paint, and new Whirlpool appliance package.

Lessons learned? Challenges?

I am buy and hold everything investor, unless doing a 1031 exchange and upgrading to commercial units. I know some people will take $30,000 profit and flip this, while my philosophy is taking the $300 month cash flow. I don't want lazy equity and like transferring it as down payments or collateral to other projects.

Unlike flipping.........When holding the property it allows me to still have the equity which can later be tapped into as leverage for other properties.

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

I am real estate agent and recommend to stick with local banks for local deals.