Fully renovated and rented LG smart home. All new 4-BR/2-BA, finished basement, large deck. Quiet & Peaceful location in Melrose Garden, close to 25th Street on the edge of Harrisburg city. Improvements include: All new kitchen with stainless appliances, premium cabinetry and LED lighting throughout. Added full bath in finished basement and great room. Hardwood, Tile and Laminate Flooring. Central Heat/Air. Almost 1400 sqft finished. This was my first renovation. Property is rented for $1200/mo.

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

The numbers worked and the property was available from a motivated seller. The location was nearly ideal providing accessibility to multiple living and shopping venues and downtown.

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

This deal was sourced from the MLS and had been on the market for a while. We got $12,000 off the asking price.

How did you finance this deal?

Conventional Residential

How did you add value to the deal?

A full renovation. The kitchen had very little cabinetry and it was original so we gutted it and started over with new appliances, premium cabinetry and hardware. The basement was unfinished and a partial bathroom renovation had begun (incorrectly) so all this was completed professionally and the added bath with a great room in the finished basement added a lot of value. Also added smart features such as smart outlets and networking components to make this home both Google and Amazon ready.

What was the outcome?

Currently rented at $1200/mo with over $600 in cash flow to well qualified tenants. Always on-time and we're continuing to clip coupons off this property. The area supports rents between $800 and $1000.

We own another unit 2-doors away and getting $1300/mo for it. I did that one as a Samsung Smart home. I flipped yet another one a few doors down as well buying it for $8000 in Nov. 2019 and selling for $30000 in Feb. 2020. It recently sold for $79,500 in July/2020.

Lessons learned? Challenges?

In this reno, we did all the work ourselves. Many, many days and nights working to save money. I wanted to learn what it took to do a reno. The work could have been done quicker but at a much higher cost. I did have a few specialized contractors come in for things like electrical and plumbing. In this I learned not to leave contractors un-monitored and to be sure they don't cut corners.

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

Ken Boyer with Brokers Realty - RE Agent - He's an excellent agent for the Central PA market.
Pam Wevodau with Cardinal Financial - She's at the top of her game in the financing of residential properties.