All Forum Posts by: Eric Prine

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $70,000
Cash invested: $30,000

Single family home that we BRRRR'd. Refinanced and left about $10k in the deal. Super successful first BRRRR!

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

this is the kind of deal I'd like to do more of. BRRRR gives us desirable properties that get good rents and should need less maintenance and capx in the first several years.

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

MLS. before you had to pay above asking. those were the days.

How did you finance this deal?

traditional investment loan with a fantastic lender and then refi'd when the reno was complete.

How did you add value to the deal?

redid most of the house without changing floorplan.

What was the outcome?

rented out at the tenth percentile of rents for the area.

Lessons learned? Challenges?

i can't really DIY much of the reno. i don't have time.

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

Me! and Mike Tavani of Guaranteed Rate. He is the best!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $250,000
Cash invested: $75,000

This was our primary residence for 4 years and in October 2021 we turned it into a cash flowing rental property. The competition for rentals is so strong in this area we were able to get $100 more a month than we asked and a 2 year lease.

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

This was an easy lift. We bought 5 years ago. We know the house well and moved 3 blocks away so it was very easy to convert it into a long term rental.

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

we bought it during a very different market. We purchased it for $250k and it is worth about $325k now. We also have a HELOC on it.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

finished the basement and redid the kitchen and bathroom.

What was the outcome?

a class A rental in a Class A neighborhood.

Lessons learned? Challenges?

We should have asked for more rent :)

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

I had an agent when i bought but i am now a full time agent.

Technically we still have 2 R's to go.  Refinance and repeat.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $67,000
Cash invested: $30,000

Single family home that we are BRRRR'ing. We are currently doing some DIY renovations on it.
We ended up hiring out a lot more than expected and spending more than expected. but we ended up getting more in rent than anticipated. Next step is refinancing.

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

Easy barrier to entry and I like single family home (for now).

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

MLS, just offered less than asking back when that was possible.

How did you finance this deal?

conventional loan. paid cash for renovation. will soon refi.

How did you add value to the deal?

New: floors, doors, water heater, kitchen, laundry, bathroom, lights, blinds, paint, etc.

What was the outcome?

purchased for $67k put $30k into it. Expected to rent for $1250 ended up getting $1495. We started with a management company and so far so good. Unfortunately the time between purchase and renting it out was 9 months. Way longer than it should have been even considering Covid.

Lessons learned? Challenges?

DIY is not my thing. Get multiple bids.

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

Mike Tavani and Guaranteed Rate
Just started working with Kevin Moyer at Otter Property Management

Thanks!

@Chris K.

@joe

I'm about to finish renovations on my first rental property in the Frankfort area (19124) of Philadelphia and I'd like to start a relationship with a good property manager.  My goal is to add at least 2 properties per year to my portfolio and will need management for all of them.  for this first property i'm trying to decide whether or not to go Section 8.  the house was Section 8 previously and i've heard that the rents are higher and the tenants more stable.  I like the idea of providing affordable housing as well. 

Hey @Jake Washburn I am on this one but I think in the future i'd like to hire it all out.  it was just a conventional loan with 20% down.  Then i'll refi and pull 75% out of the

Hey Dylan. thanks! We have friends that started a management company down there.  we pay them 20% of the after tax income excluding cleaning fees.  We also go down once or twice year to stay in the house and check on the user

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $325,000
Cash invested: $30,000

Bought as a personal residence and house hacked it before I knew that term. When I moved away from Savannah it was used as a traditional long term rental. Four years ago we turned it into a vacation rental. Everything is above board and we have a Short Term Vacation Rental license from the city and pay all the city and state taxes and have a manager that runs it. We recently refinanced and pulled $80,000 out of it and are using that money to start our BRRR investing in Philadelphia.

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

It began as a persona residence then became a long term rental and then it became clear that in this area short term vacation rental are very profitable and if you stay within the confines of the regulations I think they can be fairly safe long term.

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

Bought it in 2005 as a personal residence. I don't recall if I negotiated at all or not.

How did you finance this deal?

$0 down conventional loan. They were giving those away in 2005 :)

How did you add value to the deal?

Did some renovations when we changed it to a vacation rental.

What was the outcome?

A great vacation rental that does very well and we were able to cash out refi.

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

Mike Tavani at Guaranteed Rate for the cash out refi.

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $325,000
Cash invested: $30,000

I bought this house as a personal residence and house hacked it before I knew that term. When I moved away from Savannah it was used as a traditional long term rental. Four years ago we turned it into a vacation rental. Everything is above board and we have a Short Term Vacation Rental license from the city and pay all the city and state taxes and have a manager that runs it. We recently refinanced and pulled $80,000 out of it and are using that money to start our BRRR investing in Philadelphia. Here is a link to the home:
https://www.airbnb.com/rooms/7896025?s=67&shared_item_type=1&virality_entry_point=1&sharer_id=1358294&unique_share_id=599e14d1-a4f5-45e4-8f9d-78173ecae5c2

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

It began as a persona residence then became a long term rental and then it became clear that in this area short term vacation rental are very profitable and if you stay within the confines of the regulations I think they can be fairly safe long term.

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

Bought it in 2005 as a personal residence. I don't recall if I negotiated at all or not.

How did you finance this deal?

$0 down conventional loan. They were giving those away in 2005 :)

How did you add value to the deal?

Did some renovations when we changed it to a vacation rental.

What was the outcome?

A great vacation rental that does very well and we were able to cash out refi.

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

Mike Tavani at Guaranteed Rate for the cash out refi.