SFR buy & hold investment in Concord! Deal number #3 for 2021

[Pieter T Van Zyl]

Investment Info:

Single-family residence buy & hold investment in Concord.

Purchase price: $118,000
Cash invested: $23,000

Purchased in May with hard Money, Over the next 3 months I spent around $23,000 on new floors, windows, paint, appliances, yard work, and curb appeal. The house is currently renting for $1450 a month in quickly growing Concord. The hardmoney loan was 6 months at $1100/month, so still less than rent. Will be refinancing in November and expect after pulling cash out that my mortgage will be around $680/month, leaving more than $600 in cash flow or around $450 in pure cash flow.

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

I was looking for a BRRR home and Concord was one of the areas I was investigating. I had the money to complete this deal without Hardmoney but decided to use it to ensure I had plenty of reserves to not risk anything during COVID.

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

Realtor pocket listing.

How did you finance this deal?

Hard money for the home, then personal funds for the reno.

How did you add value to the deal?

Cosmetic repairs and curb appeal.

What was the outcome?

$450 in pure cash flow

Lessons learned? Challenges?

Utilize contractors as much as possible, doing the work your self is cheaper but may take much longer.

[Jordan Thompson]

Great numbers Pieter! What part of Concord? I actually live in Concord and looked at a few potential BRRRR properties in the past few months. How many beds and baths does the house have?

[Andrew Syrios]

Congrats Pieter!

[Dmitriy Fomichenko]

Nice! Congrats @Pieter T Van Zyl ! 

[Pieter T Van Zyl]

Thanks Everyone! @Jordan Thompson The home is located right next to Barber–Scotia College. It is a 3/2 with 1278 sq ft. I will refi later this year and I estimate it will come out around 175k ARV but Zillow and others show much higher so fingers crossed.

[Jordan Thompson]

That’s awesome! Was the $28k rehab cost pretty on-par with your budget?

[Pieter T Van Zyl]

@jordan 

After the inspection and walkthrough I estimated 20k but budgeted for 25k so 23k was pretty close. The flooring ended up being less than I expected and then the windows, plumbing and electrical ended up being more than I expected.