All Forum Posts by: Patrick McGrath

@Anthony Johnson

Nice looking property! Paint the cabinet and add some nice pulls. You can use a counter wrap to give the counters a higher end look and Peel and Stick back splash is easy and looks good. Paint all the walls and rooms the same color, I use chic grey and bright white for trim. Keep the tile in the bathroom, change out the toilet and upgrade the lighting along with the paint. If you can replace the carpet or put down LVP. You should be able to get it $3ft installed.

Make it clean, fresh, bright and inviting.

Hope this helps

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $109,000
Cash invested: $13,000

3 Bedroom 1.5 Bath 1,100 Sqft SF house built in 1900. PITI $750 - Rent $1,500 - AVR $180-$190K.

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

Property was a Foreclosure in a up and coming part of town off of Main St. Given the purchase price and rehab cost this lined up perfectly for my next BRRRR.

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

We found this deal on the MLS.
We initially put in an offer $10k under asking at $98,000.00 with 10% EMD. They came back and said they had multiple offer and wanted Best and final. I knew the property needed work and that we would hopefully be able to get a discount after inspection so we went ahead and offered $135k with $13,500 EMD so $26k over asking. After inspection we presented a list of items and cost from contractor, we were able to get the $26k off and close for $109k. Thanks Covid-19

How did you finance this deal?

We financed the Deal with funds from a Cash out refi from BRRRR #2 - 15% Down FHA 30 Year Loan 4%

How did you add value to the deal?

Kitchen Rehab, Replacing Single Pane wood frame windows with new Vinyl Windows, Vinyl plank flooring throughout main level, Refinished original hardwood floors throughout second level, Stainless Steel Appliances, Re-glazing Tile and Tub in bathroom and re-decking front and back porches. Total Rehab cost of $13,000.00

What was the outcome?

We had originally budgeted $23k for the rehab and we will come in at $13k. Thought whole house needed Knob and Tube replacement, but only second level needed to be updated. Had $6k budgeted and ended up costing $1700. Thought we would need to replace old Radiant gas grate heater with Mini split system, budget was $7k, spent $140 For HVAC tech maintenance and new Thermostat. Because of this saving we spent a little more on other items and property is rented for $1500/month and ARV is $180-$190k

Lessons learned? Challenges?

I learned that if you find a good deal and the numbers make sense, do whatever you can to lock it up. I also learned that it pays to be conservative with your rehab cost and budget for the worst. This really came into play when we did not have to spend as much as we planned and makes this deal even better! I also learn to hire a painter, this has been the first property we have really been hands off on and has opened my eyes to how much more we can accomplish by hiring out work.

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

Jamie Lenes SWBC Mortgage - - He is the Best, very knowledgeable and always available to answer questions.
Joe Bird - Remax Advantage Realty - - Been working with Joe for 7 years and can only say great thing about him.

@Praveen Balaji

We paint all are units Chic Grey walls, flat white ceilings and bright white semi gloss trim/doors. It gives a nice bright, fresh and appealing look. This is the same color palate almost all flips in the area are using and that’s what we are going for. I believe paint makes a huge difference and attracts a certain type of renter. I want someone who wants to live in my units because they are nice and they can afford them, not just because it’s what they can afford. Just me 2 cents.

@Reggie Powell

Facebook Marketplace and Zillow Rental Manager are what I use. Make sure to take great pictures with lots of good lighting.

@Phillip Rosin

Reface the cabinets with shaker style doors, slow close hardware and nice modern pulls(amazon has the best prices for nice pulls) I have done the peel and stick subway tiles (order off amazon, 1/3 the cost from HD) they look great and are easy. Get stainless appliances from the used appliance store or market place, 100% glass top. You have a small counter space, get the granite and under mount sink, neutral color and never have to replace. It you want to class it up get the under cabinet led from ikea for $40.

I build the shaker cabinet doors myself. About $250 in wood, $150 in hardware and $50 in paint (berh acrylic cabinet paint and 1/4 nap roller)

This will cost less, update the kitchen, get it rented and you can save for “nicer” upgrades down the road.

Just my 2 cents* good luck

@Matthew Irish-Jones

And time! Lol

@Michelle Fenn

I love this! Thank you sharing.

@Kevin Mahoney

Know your lender ahead of time and what all of your numbers need to be. Make sure you have leases signed and first and deposit before starting the refi.

Remember leaving money in the deal is fine and shouldn’t hurt that bad. If all your numbers work and you moved forward with the deal, having $5-10k left in shouldn’t be a issue.

We have are appraisal tomorrow on are 3rd BRRRR and are excited but with everything going on a bit nervous. No matter what though, I know I have a great property that cash flows and I will be pulling enough out even with a lower appraisal to be able to get the next one.

@Autumn Whittington

Ditch the new cabinets. If anything just replace the doors and hardware. Or sand paint and put some nice new pulls on the existing doors and drawers.

Your can get new doors made up for $45-$55 a door or less. But it sounds to me painting the existing and updating the hardware is the best route. Amazon has great deals on cabinet pulls for $35 for 24 modern styles. You could probably get away with spending less than $1500 and get that same rent increase.