Investment Info:
Single-family residence hard money loan investment in Elizabethtown.
Purchase price: $74,000
Used the BRRR method. After small renovations and filling the unit, I refinanced with a $20k net cash-out and did not use any out-of-pocket money.
What made you interested in investing in this type of deal?
The numbers.
How did you find this deal and how did you negotiate it?
MLS. It was listed for an extended period of time, went under-contract, and then ended up being relisted. I offered a price $20k less than the asking price. We went back and forth twice; I ended up paying $4k more than my first offer.
How did you finance this deal?
Hard money that covered closing costs as well. Then I refinanced with a bank at 80% LTV.
How did you add value to the deal?
Put in about $15k in repairs/renovations. Knocked a couple of walls out, replaced flooring and appliances, painted.
What was the outcome?
The property appraised for $141,300 and I got it rented out for $1,425 a month.
Lessons learned? Challenges?
I lost about $3k when a toilet backed up due to a connected sewer line in the adjoining house. Insurance did not cover it; I will make sure that is covered on future projects.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with a real estate agent named Tyler Stoltz.
