All Forum Posts by: Elijah Tisdale

Investment Info:

Single-family residence buy & hold investment in Topeka.

Purchase price: $215,000
Cash invested: $450,000

This is my first full rehab and purchase of a property which. It will be a short term Airbnb rental.
Have had success with two other Airbnb properties that I currently arbitrage in the local Pittsburgh area.

Purchased the home far below market value with a probate sale.
Purchase Price of $215k + $240k Reno costs
Totaling around $450k all in.
The property appraised for $875k

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

The unique architecture and potential of the property, as well as the money making potential that it had.

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

Found it on Facebook marketplace through our wholesaler that had gotten the deal from the previous owner before he had passed away so purchased it as a probate sale so I was able to get it far below market value.

How did you finance this deal?

Hard money lender.
(The Hard Money Co/FStreet Investments)

How did you add value to the deal?

Full rehab and upgrade.

What was the outcome?

Had an exceptional outcome.
All in at $450,000 and the appraised value of the property is $875,000 on the low end.

Lessons learned? Challenges?

Many lessons have been learned firstly is you can’t be too nice or trusting and second is, don’t wait to figure out the refinance and cash out process and until you are almost done with rehabbing the property because currently going through a very lengthy, cash out refinance ordeal at the moment as I’m trying to get financing terms finalized as we speak.

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

The Hard Money co/ FStreet Investments have been exceptional from start to current.

Still trying to get a lender squared away with the cash out refinance process.

@Matthew Crivelli very very helpful advice, thank you!!

Hey! Thanks for reaching out, will definitely look into joining some of those groups today! 
and I paid for an appraisal about two months ago and the appraiser had some OK comps but this property really is far and above a lot of others in the area. there are some brand new condos that are small in comparison directly behind going for 500k to 700k. And it’s a great location. The house is the only one left out of a whole neighborhood of mansions that were once in the area. 
All the surrounding ones had been torn down by the 1980’s. 
anyways thanks again! Appreciate the response!

Hello! I did. Also will be acting as G.C and will be on site full time. Also thankfully the previous owner had started/completed alot of the major work. Already have a lot of the materials purchased as well. But fingers crossed. Will do whatever it takes to get it through!

Hello, this is my very first purchase all in my own. Have had success doing Airbnb arbitrage the last year and a half. Which has allowed me to save and begin the process of purchasing my very first investment property. I have this awesome property that I’ve been in the process of buying the last few months, it was originally posted for sale by the original owner, but he passed away at the end of last year, so I had to wait for the property to get to get through the probate process. Have been working with a lender the last few months. And have a closing date of March 11.

Have an ARV of 56%. But strongly feel as though the appraisal value will be significantly higher than what was estimated.

The previous owner left the house completely full of belongings. An entire workshop of tools as well as building materials. Also had a new front patio built a few years ago along with all new electricity a few years back. Lots of things have been done and there is a lot of cosmetic work.

Main issue with house is the amount of mess left behind. Most of which I have had approval to clean out by seller. Had gotten ahead of myself but had been under the impression I was 100% secured on my hard money loan. Had spent the last couple months sourcing materials for great prices from various avenues, purchased a majority of the replacement windows. Vanities for bathroom. An entire kitchen cabinet set. As well as lighting and such.

However now that my closing date was officially around the corner the underwriter began doing their thing and came back with a past tax bill that needed to be paid before closing and that was it. Paid it immediately then sent payment confirmation. And didn’t hear back. Reached out several times then finally decided to try one of the other associates I had worked with and they told me that they ran into issues with underwriter and now they are saying the underwriter doesn’t want to to approve me anymore cause they feel like it’s too much of a project for a first timer.

I will admit I probably got a bit ahead of myself with purchasing materials but I’m just excited and always looking for the best deals when sourcing materials.

My closing date is in two weeks and now I’m just trying to figure out what my best route is.

Any advice would be great.

As a side note I make around $13-25k a month in passive income. With a mediocre credit score.

Have purchased well over 35k in materials for the home. And I have quite a bit of rehab experience even though this is my first purchase of my own. Any recommendations or hard money lenders that anyone has would be greatly appreciated! 
included my final terms from my lender I had been working with the last few months. As well as before and after on two of the rooms I have cleared out and removed drop ceiling from. 

Exit strategy is to refinance and use as Airbnb. The location and size of this property guarantees that it will be a consistent monthly revenue in. To give an idea of what my current numbers are with my other two Airbnb properties, they are both 5 bedroom 3 bathroom. And are rented out just about every weekend of the year. Already have almost every weekend booked this summer for both. And last summer I made around 10k each property each month in busy season. And know I could earn an extra 30-45% more with this property due to that fact that it has 4 bathrooms and 8 bedrooms and is centrally located as well.