SFD - Estate buy w/ rehab

[Frankie Renaldi]

Investment Info:

Single-family residence buy & hold investment in Nazareth.

Purchase price: $95,000
Cash invested: $16,000

Single family detached 3 bedroom (one walk through) 1 bath. Nice fenced in deep backyard. Estate property needing some work.

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

Price point in this school district is never ever available. Knew it was a quick and high rental once cleaned up.

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

On mls and being sent to auction. Listed at 129,900. Offered as is for 85k and landed on 95k.

How did you finance this deal?

First deal and used traditional investment prop financing. Used my HELOC on my house to pay for the repairs and then 4 months later did a cash out refi into a 20 commercial loan.

How did you add value to the deal?

Electrical, paint, chimney liner, roof

What was the outcome?

Unfortunately still have 16k in due to an under appraisal. Property is now worth 170+k. Rent roll is 1385/month and PITI is 935 after refi. Currently going through a recast to drop interest so profit will go up!

Lessons learned? Challenges?

Chimney liners suck, basements get wet, and never be afraid to buy your first deal...it will be worth it and will shake the nerves off to get your second and third and fourth.

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

I am an agent. Cash out refi was done with First Keystone Bank (my branch is in Bethlehem0. Mortgage rep was Mike Santiago