From Conventional Loan to Paying Cash

[Anastasia Gamino]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Indianapolis.

Purchase price: $55,000
Cash invested: $80,000

Bought @ 55k
Rehabbed @ 25K
Rent @ 1500
Refinanced@ ARV 120k 70 LTV 3.6% fixed rate
Repeat @ 86k to reinvest!

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

The value add opportunity.

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

MLS- We were going to use a conventional loan. However, since there was fire damage in the kitchen of one of the unit's, this made the property ineligible to qualify for a conventional loan. We were able to offer 13K below our original agreement since it would not qualify for a loan.

How did you finance this deal?

Cash and a small private loan

How did you add value to the deal?

Renovate kitchen, essential updates, and add Central Air.

What was the outcome?

Perfect BRRRR. Invested 85K and just received a check for over 86k when we refinanced!

Lessons learned? Challenges?

It was stressful dealing with the bank in the beginning. With some creative financing, we were able to pursue another avenue to purchase the property!

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

Diego Hernandez! Great agent and also a real estate investor. Thank you for your patience, mentorship, and guidance!