Investment Info:
Single-family residence buy & hold investment in Garfield Heights.
Purchase price: $52,500
Cash invested: $12,500
Sale price: $90,000
Single Family BRRRR
Started as a House-Hack with 2 roommates
Once rehab was completed I refinanced taking 30k in equity back
Currently renting property, and used proceeds to purchase my next BRRRR
What made you interested in investing in this type of deal?
As a 4th generation real estate investor, I have always been involved in the investment life, and home remodels. Once I had enough money to make this happen I did.
How did you find this deal and how did you negotiate it?
This was my first purchase as a Licensed Agent, the area was in a heavy buyers market at the time, and this property was being listed by an agent in my office, plus was owned by an out of state relative after the death of the previous owner, giving me a huge advantage with the negotiation
How did you finance this deal?
Conventional Loan
How did you add value to the deal?
Tons of Paint (Painted the exterior, kitchen cabinets, all interior walls, all the molding, and doors)
Refinished hardwood floors
Added 2nd bathroom to the basement
What was the outcome?
Made $250 per month during reno via house hacking
Took out 30k in equity after refi
Still earning $250 per month while renting after expenses
Lessons learned? Challenges?
The biggest returns aren't always the most expensive when I purchased the home I created a 25k reno plan to flip and sell, but after becoming lazy and extending the reno time, I realized that some of the items I wanted to address were unneeded, being able to reduce my expenses made it possible to actually keep the property and rent it out while still taking 30k in equity out.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with myself Brendan R. Smoluk as the Realtor, I obviously highly recommend myself and am always happy to help others looking to invest or just learn more about the process.
