All Forum Posts by: Eric Prine

Investment Info:

Single-family residence buy & hold investment in Philadelphia.

Purchase price: $175,000
Cash invested: $60,000

We just closed on our latest BRRRR project. We'll be renovating it over the next several months and then getting a renter in it.

1/16/23 Update. Our renovation in nearly complete. it should be done by the end of the month. I'm very happy with the process so far. I'll update with photos and costs.

UPDATE
We have completed the renovation and are very happy with how it came out. The reno ended up costing about $65,000. We have renters who just signed a new 2 year lease for $2400. We are now working on the cash out refi.

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

it's in a great neighborhood we know well. The house needed a lot of work so we knew we could add a lot of value.

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

I met the seller 4 years ago and was going to try to help him sell it. He inherited it when is sister passed. Unfortunately over the last 4 years he wasn't able to get anything done with it and we finally offered to buy it from him. it still had all of his sisters things and had had squatter break in and live there for a month. They stole the copper before they left. We took it totally as-is so he didn't have to deal with anything.

How did you finance this deal?

it was in just good enough shape to qualify for a conventional loan with 25% down. We financed the renovation with a 0% interest credit card for materials and a heloc for the contractors.

How did you add value to the deal?

We rewired and replumbed, added AC, redid the kitchen, expanded and redid the main bathroom, added a half bath and laundry room. refinished the original wood floors. Basically everything except take it down to the studs.

What was the outcome?

We just signed a renter for a 2 year lease. So far, so good.

Lessons learned? Challenges?

there were hiccups but we rolled with them. we didn't think we'd need to replumb but then we discovered the stack drain pipe was basically rusted into nothing.

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

Mike Tavani of Guaranteed Rate. Best lender in the business.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $175,000
Cash invested: $60,000

We just closed on our latest BRRRR project. We'll be renovating it over the next several months and then getting a renter in it.

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

There was value to add.

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

I met the seller who inherited it from his sister after she passed. I was going to help him sell it but nearly 4 years later he still hadn't done anything with it so we offered to buy it from him as is.

How did you finance this deal?

conventional investment loan. We will use HELOC to renovate.

How did you add value to the deal?

We will be spending about $75k on a renovation which will add about $125k worth of value.

What was the outcome?

Still in process.

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

Mike Tavani at Guaranteed Rate is the best in the business.

As an agent I tend to dress in a casual and comfortable manner and let me knowledge and friendliness lead the way.  I drive a 2003 Honda Element. I thought about getting something "nicer" but I love this car and don't want anything different. For new clients and showing appointments I'll dress up slightly (button down shirt or blazer) but I don't put on a 3 piece suit because it's just not me.  I think be yourself but the nicest version of yourself and if you drive a less than fancy car just keep it clean and looking as good as it can. 

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $325,000
Cash invested: $50,000

I bought this house and house hacked it before I knew that term. I moved from Savannah it was used as a long term rental. In 2015 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 refinanced and pulled $80,000 out of it and are using that money to start our BRRR investing in Philadelphia. https://tinyurl.com/2p87bzwh

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

Dumb luck. it's our best property and we want to do more short term rentals.

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

MLS in 2005. just paid asking price.

How did you finance this deal?

this was back when they were giving away mortgages. $0 down. Now we have refinanced and pulled equity out.

How did you add value to the deal?

lots of upgrades and repairs over the years

What was the outcome?

great, cash flowing short term rental.

Lessons learned? Challenges?

the right manager is a must. I want to do more STR.

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

Mike Tavani of Guaranteed rate helped with the Refi.

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $325,000
Cash invested: $50,000

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. In 2015 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?

Dumb luck. it's our best property and we want to do more short term rentals.

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

MLS in 2005. just paid asking price.

How did you finance this deal?

this was back when they were giving away mortgages. $0 down. Now we have refinanced and pulled equity out.

How did you add value to the deal?

lots of upgrades and repairs over the years

What was the outcome?

great, cash flowing short term rental.

Lessons learned? Challenges?

the right manager is a must. I want to do more STR.

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

Mike Tavani of Guaranteed rate helped with the Refi.

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