All Forum Posts by: Edward Toomey V

Investment Info:

Single-family residence buy & hold investment in Roanoke.

Purchase price: $28,950
Cash invested: $32,500

Distressed single family home fully remodeled with added second bath. HUD loans and grants used to finance repairs.

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

The house was a good deal and HUD was offering grants and loans to builders that bought a renovated distressed homes in the part of the city.

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

Being sold by former land lord who had bad tenants at the time and wanted to unload.

How did you finance this deal?

Cash

How did you add value to the deal?

Full reno Including new laundry room, HVAC, kitchen and bath remodels, and added 2nd bathroom for master.

What was the outcome?

ARV $110,000. Purchase and rehab cost $61,450. Cash out refinance $88,000 making us $26,550 cash positive with a rental bringing in $1,000 a month.

Lessons learned? Challenges?

The house needed a lot of work that at first just looked like small jobs but quickly added up to be a massive project and at the time we had other larger projects underway and this house took 4.5 months to finish.

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

Sharon Crenshaw Wainwright and ***.

We did consider holding it but we had purchased 4 properties in 2 months and needed to refill the cash reserves and this house had the best margins on a resale. This house also was in a historically low income part of Roanoke and would see the least amount of appreciation over time as compared to the other properties we had purchased. 

Investment Info:

Single-family residence fix & flip investment in Roanoke.

Purchase price: $31,500
Cash invested: $28,700
Sale price: $94,500

Small single family home bought as 2 bed 1 bath. Renovated and turrned second living room into master suite including ensuite bath. Updated kitchen and hall bath and refinished hardwoods. I personally refinished all the mortis knobs to add some historical beauty into the house.

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

The asking price left a lot of room for profit.

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

This was a bank foreclosure and we got into a small bidding war with another investor because the price was so under market.

How did you finance this deal?

Hard money investor

How did you add value to the deal?

We converted the extra living room into a master suite and updated the kitchen and bath

What was the outcome?

We sold this house for $94,500 in the selling season

Lessons learned? Challenges?

When you buy a house in December don't rush the renovations because it is going to sit on the market until about April when selling season is underway.

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

Sharon Crenshaw of Wainwright Realtors Roanoke VA

In this case I made a down payment of $10,000 towards the $55,000 sale price and the agents got 6% of the sale equal to $3,300 which was taken from my down payment at closing. If the seller is under contract with a listing agent and you want to do owner financing you need to propose a deal that covers the agents or wait for the listing to expire. 

Investment Info:

Single-family residence buy & hold investment in Roanoke.

Purchase price: $55,000
Cash invested: $15,000

Single family home fully renovated and now renting for $1,000 per month $300 more than the average rent in NW Roanoke.

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

Low purchase price and creative financing made this house a good asset for networth on our balance sheet and provided higher than usual cash flow from rent.

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

The house was listed for sale on the MLS and had been a rental for decades. The house is in a part of Roanoke that doesn't sell well and is mostly renters so we approached the owner about owner financing $55,000 sell price $10k down 4% APR over 30 years with 10 year balloon. This owner finance deal made it easy for us to buy the house and get it repaired and cash flowing before going to a traditional bank for financing.

How did you finance this deal?

Owner financing

How did you add value to the deal?

We fully remodeling the house new kitchen, bathroom, added in unit laundry, refinished hardwoods and fresh coat of paint. The house was valued at $110,000 after $20,000 worth of repairs.

What was the outcome?

We added a property to our balance sheet with lots of untapped equity and cash flowing positive income to the tune of $600 per month

Lessons learned? Challenges?

The house sits on a very narrow street and has a steep narrow driveway these logistic issues made getting a dumpster placed impossible nor could we place our own trailers in the driveway or on the street. All the clean out and construction waste had to be loaded in a standard pickup and taken to the dump. This added $1,500 in extra labor because of the added trips.

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

Sharon Crenshaw with Wainwright Realtors in Roanoke VA