Investment Info:
Single-family residence buy & hold investment in Duncan.
Purchase price: $75,000
Single family BRRR in Dorchester Terrace Neighborhood of North Charleston. Purchased for $75,000 with $35,000 in rehab, purchase price and rehab financed through a local hard money lender. Appraised at $185,000 and refinanced at 75% LTV, with no cash out of pocket after the refinance. Rented initially for $1,300 and recently increased to $1,450/month.
What made you interested in investing in this type of deal?
This was an area of North Charleston I was familiar with, and there has been a lot of investor activity in this area. There are several homes that have been renovated and flipped, and houses in this neighborhood also have solid rental rates.
How did you find this deal and how did you negotiate it?
Facebook marketplace. Contacted the seller and was one of the first buyers to sit down with them. Their asking price was reasonable and I was able to offer a quick close which appealed to them.
How did you finance this deal?
Hard money loan through a local private lender. 12% annually with 2 points at closing. Refinanced into a 30 year DSCR loan after the renovation was completed.
How did you add value to the deal?
We did approximately $35,000 in rehab including new roof, HVAC, updated kitchen, updated bathroom, paint, and new flooring.
What was the outcome?
After completing the rehab, the house appraised at $185,000 and we did a 75% cash out refinance to pull our money out of the deal and keep it as a cash flowing rental.
