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Updated about 5 years ago on . Most recent reply

User Stats

75
Posts
54
Votes
Robert Webb
  • Rental Property Investor
54
Votes |
75
Posts

BRRRR Condo Success in Central NJ

Robert Webb
  • Rental Property Investor
Posted

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $132,000
Cash invested: $12,000

Foreclosure purchase, 12k in rehab, was able to refinance and takout 28k of equity after fixing it up and was able to refinance with a rate of 3.75 investor 30 year loan.

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

Equity potential and monthly cash flow - also this was my first deal so the lower price point (for central nj) was an appealing way to get into it

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

Purchased on Hubzu - so it was a straight bidding system, I knew what I was willing to spend and actually got it cheaper than I was willing to go so not too much too it

How did you finance this deal?

I secured financing through a traditional mortgage broker w/ an investment loan at 80% LTV - 20% down payment

How did you add value to the deal?

New floors, new appliances, new windows, new moldings, painting existing kitchen cabinets, painting entire units, new blinds, entire new bathroom

What was the outcome?

I had 3 leases of putting it on market and the guy I picked played games and burned me right before Christmas, so had to eat an extra few weeks to get it leased but put it back on and got 3 more applications with a higher rent

Lessons learned? Challenges?

I learned a lot of budgeting time and money for these projects - challenges were really basic learning curves to doing the work as I did most of it myself (expect the electric panel replacement and electric stuff)

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

I am a real estate professional, so I found the deal myself for me, on the MLS. I used a lender and title company I work with all the time, very seamless team.

Most Popular Reply

User Stats

75
Posts
54
Votes
Robert Webb
  • Rental Property Investor
54
Votes |
75
Posts
Robert Webb
  • Rental Property Investor
Replied

@Scott Wolf republic bank in nj - I can give you the info of the lender if need. I did pay down 1 point from 4 to 3.75% pays itself back in about 4 years and I don't plan on refinancing it again for a long time. Not yet holding it in an LLC, but planning on moving it to an LLC in 2020 before I renew the lease.

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