Investment Info:
Single-family residence buy & hold investment in Dayton.
Purchase price: $42,000
Cash invested: $16,000
Contributors:
Kyle Warmouth
2 bed 1 bath single family home.
PP of 42k and rehab of 16k in Dayton KY - subburb of Cincinnati OH.
We did major updates to the kitchen, bathroom, and the "loft" which we turned into a second bedroom to increase rents. Refinished cabinets, quartz counters, opened a wall to create a breakfast bar, removed Dining room window to put in a door to the patio. All new SS appliances in the kitchen, brand new HWH and washer/dryer and tub surround.
What made you interested in investing in this type of deal?
We saw the ARV potential in the area and actually got the ARV appraisal back higher than we expected.
How did you find this deal and how did you negotiate it?
Zillow. We used an agent to represent us
How did you finance this deal?
Cash purchase and rehab
How did you add value to the deal?
Complete rehab to kitchen, bathroom, and updated the "loft" to second bedroom that wasnt previously in code
What was the outcome?
Rented after 4 months of rehab and a cashout refi that will set us up nicely to scale quicker than previously expected.
Lessons learned? Challenges?
Doing the rehab myself was alot of time and energy. Obviously learned a lot during this phase. As far as BRRRR, we have learned ARV, appraisal, and cash out refi processes even more so.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Equitable Mortgage Coproration was our cashout refi lender. Great company. Sparen Realty out of Covington KY was our buyer brokerage.
