Single-family residence buy & hold investment in Milwaukee.
Purchase price: $74,900
Cash invested: $75,000
BRRRR strategy - Purchased a foreclosed property in one of Milwaukee's hottest neighborhoods. This home needed everything! New electrical, new plumbing, new HVAC - including adding ductwork to second floor. New roof, and new dormer to create a code compliant 3rd bedroom.
$149,900 invested. Appraised at $205,000. CASH OUT REFI of $150,000. 73% LTV.
Rents for $1,550/mo.
$400/mo. cash flo.
What made you interested in investing in this type of deal?
To build long-term wealth and also wanted the ability to pull out and reinvest my money.
How did you find this deal and how did you negotiate it?
How did you finance this deal?
Personal funds and Private Money.
How did you add value to the deal?
The rehab increased the ARV immensely. Being an Architect I was able to save money by doing the design/permit drawings myself. I also saved money by G.C.-ing the rehab myself.
What was the outcome?
I created a high-end rental that attacted great tenants. The project created $55,000 in equity, returned inital investment, and provides nice monthly cash flow.
Lessons learned? Challenges?
Managing contractors and dealing with inspectors is and will always be one of the greatest challenges.
Mind disclosing what neighborhood this was in? Congrats sounds like a homerun!
This was in Bayview.
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