All Forum Posts by: Ryan McLaughlin

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $167,000
Cash invested: $49,000

This 3 bed, 1 bath, 1450 sqft rowhome will soon be a 4 bed, 3.5 bath with 2100 sqft - by adding livable space to the basement. We should be on the market by the end of summer and we hope to list for $425K. We anticipate having $49K tied up in the project - mostly funded by our new HELOC.

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

I sourced the property off market. The house was visibly in need of repairs and when the tenants were moving out I sought out the owner. Tracking him down through a neighbor, I was able to work out a fair price for the house and we closed right after Christmas.

How did you finance this deal?

We are funding through a hard money lender, Direct Mortgage here in Philly who I highly recommend. We are putting up half of the capital and our partner will match. We put up 20% of the purchase price and 2.5 points on the sum of the loan. We expect to have $45K tied up here over the course of the project.

How did you add value to the deal?

I sourced and negotiated the deal. Initially, Jackie and I planned to take on this project by ourselves with a minimum scope of work: rewire, central air, kitchen, bath and floors. I brought our now partner through - an experienced GC and builder, to get his eye on the project and he took a liking to its potential. He offered to partner with us as GC, expand the scope, thus upping the ARV and we couldn't say no. We are 50/50 partners in and out.

Lessons learned? Challenges?

My favorite thing about this project is being hands off in the construction. Aside from some accounting, design input and logistical coordination we are not involved in the daily operation. This allows us to focus on our business as Realtors. When I try to do too many things at once, I don't do any of them well. I'm looking forward to watching and learning from our GC/ parter as I have in the past, bringing more construction knowledge into my orbit, making me a better Realtor & investor.

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

Direct Mortgage has been great. My wife and I are agents. Reach out any time!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $167,000
Cash invested: $49,000

This is a SFH flip I'm taking on with my wife and a parter in Manayunk, Philadelphia. I sourced the property off market. The house was visibly in need of repairs and when the tenants were moving out I sought out the owner. Tracking him down through a neighbor, I was able to work out a fair price for the house and we closed right after Christmas. Initially, Jackie and I planned to take on this project by ourselves with a minimum scope of work: rewire, central air, kitchen, bath and floors. I brought our now partner through - an experienced GC and builder, to get his eye on the project and he took a liking to its potential. He offered to partner with us as GC, expand the scope, thus upping the ARV and we couldn't say no. We are 50/50 partners in and out.

We are funding through a hard money lender, Direct Mortgage here in Philly who I highly recommend. This 3 bed, 1 bath, 1450 sqft rowhome will soon be a 4 bed, 3.5 bath with 2100 sqft - by adding livable space to the basement. We should be on the market by the end of summer and we hope to list for $425K. We anticipate having $49K tied up in the project - mostly funded by our new HELOC.

My favorite thing about this project is being hands off in the construction. We are assisting with accounting, design input and logistical coordination when necessary but are not involved in the day to day operation. This allows us to focus on our business as Realtors. I've learned the hard way that when I try to do too many things at once, I don't do any of them well. I'm looking forward to watching and learning from our GC/ parter as I have in the past, bringing more construction knowledge into my orbit which makes me a better Realtor and investor.

Sounds good, Suzanne! Just PM'd you details!

Hey Kevin, thanks for the feedback. Yeah, we plan on doing it again once we have another vacancy. That should be around the first week in February. 

I've got a pretty nice Keynote presentation and I was thinking I don't have to do it at the house. I could book a room and make it a happy hour. If you have some friends who would be into it, maybe I can coordinate around you guys. We could pick a date and I can start putting the next event together from there. Interested?

Hey everyone, I came here to advertise my free networking event this Saturday at my home in Manayunk but while I'm here I should also plug my business! I am an investor savvy RE agent serving Greater Philadelphia. I help buyers and sellers of all experience levels buy and sell investment properties. I have a special passion for helping first time buyers leverage their entrance into the market with creative house hacking strategies. And you don't have to be a first time buyer to utilize a low down payment - FHA, 203K or Homestyle loan product! I'd love to show you how.

Come by on Saturday and I'll show you how I used a 5% down payment for a Homestyle loan where I created $130K in equity and $2K in rental income at my primary residence - and no, I don't have roommates or live in an apartment. My rental unit pays my mortgage and then some. Yep, I get paid to live in my 1600 sqft house. 

Here's the copy for the event on Saturday:

What's up, Philly and BP?! My wife Jackie and I are hosting a house hacking networking event this Saturday from 11 am -12:30 pm and we'd love for you to join! 2 years ago we utilized a Homestyle renovation loan to gut renovate our Manayunk row house - adding a rental unit to our massive basement. With a 5% down payment, we've been able to add $130K in equity to our home. Not only that, but our rental brings in $2K+ monthly and we essentially get paid to live in the 1600 newly renovated sqft upstairs.

On Saturday we'll open up the books. The cash, the loan, the scope of work, the rental strategy, the highs, the lows, the blood, sweat, tears and, of course, the cash flow. Shoot me a message to RSVP and if you can't make it, drop me a line and we'll catch up another way. Cheers!

What's up, Philly and BP?! My wife Jackie and I are hosting a house hacking networking event this Saturday from 11 am -12:30 pm and we'd love for you to join! 2 years ago we utilized a Homestyle renovation loan to gut renovate our Manayunk row house - adding a rental unit to our massive basement. With about $37K, we've been able to add $130K in equity to our home. Not only that, but our rental brings in $2K+ monthly and we essentially get paid to live in the 1600 newly renovated sqft upstairs.

On Saturday we'll open up the books. The cash, the loan, the scope of work, the rental strategy, the highs, the lows, the blood, sweat, tears and, of course, the cash flow. Shoot me a message to RSVP and if you can't make it, drop me a line and we'll catch up another way. Cheers!

Thanks, Dan. That's why I put "overpaid" in quotes. As an apples-to-apples comp with it's existing use, you could say I paid too much at the time, but I saw the untapped potential and massive buildable equity. I secured the deal in '19 when it was a bit easier but my interest rate was also 4.75%. You can still get Homestyle loans closed and make great deals with them. I know a couple embarking on one now and they're going to do very well. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $240,000
Cash invested: $37,000

My wife and I used a renovation loan on our first home. Our gut rehab added 2 full bathrooms and a short term rental unit in the basement. Creative house hacking at it's best! We've added $130K in equity to the home with $37K out of pocket. The rental pays $2000-$2250 on 30 minimum stays. PITI is $1680. We get paid around $400/ month to live in 1600 newly renovated sq ft upstairs. House hacking works! I can show you how to do it.

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

We couldn't find a multi family property in a neighborhood we wanted to live in that would also accommodate our growing family. Finally we decided to seek a SFH in a desirable area that would allow us to add a rental unit. It's not easy finding that in Philly, with its attached row houses (rare to find a rear egress for private entrance) and notoriously nasty basements, but we did and it has paid off massively.

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

This was a standard sale listed on the MLS. We overpaid for it at the time but we saw so much untapped potential in it that the equity we've created more than negates the $10-20K we "overpaid" at the time.

How did you finance this deal?

With a 5% down Homestyle loan. We refinanced out two years later, dropping PMI after adding $130K in equity with construction and the "Covid bump," dropping our payment from $2200 to $1680.

How did you add value to the deal?

We gutted it. Added Central Air, 2 bathrooms, kitchen, full rewire, a basement suite and and overhauled back yard/ property egress.

What was the outcome?

We get paid $400/ month to live above our rental unit. We utilize STR on 30 day minimums to strike a nice balance between revenue and management.

Lessons learned? Challenges?

I should have spent more to soundproof between units and separately meter the basement unit. It should be full self-sufficient as far HVAC and utilities. I was out of money at the time and it's going to cost me a lot more to go back and remedy when we move onto the next one, which will be very soon. 

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

I am an agent and I have a great team around me to knock projects like this out of the park.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $172,000
Cash invested: $45,000

Currently rehabbing this old smokers house. I know you've heard of popcorn ceilings but have you heard of popcorn WALLS?! Let's just say I probably got mesothelioma from this one. Should be on the market for 11/15 move in if I can get my rear in gear!

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

This one is a block from my house. It's only 890 sq ft and I like the simplicity it offers.

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

A neighbor received one of my postcards.

How did you finance this deal?

Conventional, 15% down.

How did you add value to the deal?

Full cosmetic rehab and hardcore "de-smoking."

What was the outcome?

Should hit the market in 2 weeks. Plenty of meat on the bone with multiple exit strategies.

Lessons learned? Challenges?

Hire it out. You're losing more income than you're saving doing it yourself.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $172,000
Cash invested: $37,000

Currently rehabbing this old smokers house. I know you've heard of popcorn ceilings but have you heard of popcorn WALLS?! Let's just say I probably got mesothelioma from this one. Should be on the market for 11/15 move in if I can get my *** in gear!