Franklinton BRRR Property on Avondale

[Ryan Mainwaring]

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $66,000
Cash invested: $113,000

Rehabbed the interior & exterior of a 3 bedroom and 2 bathroom single family. Located in upcoming Franklinton.  As you will see in the lesson learned section, this was a deal where we made a lot of mistakes but we applied those lessons to all our next properties and have since not repeated them.   

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

The area is improving and we wanted to help Columbus improve the downtown areas

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

We found this deal on mls and made a fair offer based on our numbers

How did you finance this deal?

Private money

How did you add value to the deal?

We pulled 3 bedroom & 2 bathroom comps of area above Sullivant

What was the outcome?

We are holding it as long term rental

Lessons learned? Challenges?

We learned a ton on this property. The main lesson we learned was work with contractor who has done a full rehab of old homes and does quality work otherwise your rehab numbers will be completely wrong. Ours were off by 72% as we started to rent it, jumped to 85% once we had to replace the main water line for sewage, and finally to 106% after first tenant moved out and we decided to fix all the bad repairs by the first contractor (tile, baseboard, paint and etc) and damage from the tenant.

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

Yes we worked with Plaid Properties to rehab the property. Plaid properties is the second contractor we worked with, we have had no issues with the work they did, and a bonus they are helping us repair the work done by other the contractor at a below the market price.