Single-family residence buy & hold investment in North Charleston.
Purchase price: $116,500
SFR. 3 BR 1 BA 1152 sq ft built in 1961. I bought this property off the MLS with a realtor using a HELOC on my previous personal residence. No cash out of my pocket. Used HELOC for down payment and rehab costs before putting long term renter in. Currently in the process of closing on cash-out refi to purchase 2nd property so I can complete the BRRRR process.
What made you interested in investing in this type of deal?
Listening day in and day out to bigger pockets and reading the books associated with.
How did you find this deal and how did you negotiate it?
MLS and through realtor.
How did you finance this deal?
HELOC on primary residence.
How did you add value to the deal?
Complete rehab prior to putting a tenant in.
What was the outcome?
On 2nd year of the same tenants (which are great tenants). Also, in process of cash-out refi on property to use proceeds to purchase 2nd.
Lessons learned? Challenges?
Lessons learned....hire professionals to do the rehab that you don't have personal relationships with. Pay contractor for job, not by the hour. The rehab took way too long and went very much over budget.
Updated about 2 months ago
Update: Just got appraisal back for $213,000! Current mortgage $90,300 cash out refinance with new loan of $159,750. Difference of $69,450 for next deal (or two) BRRRR method is working just as it should. Thanks BP!
@Kyle Stanley Congratulations on a successful BRRRR!
@Kyle Stanley nicely done. Anyone who's willing to be patient with N. Charleston is going to have a very nice pay day down the road.
All part of the learning process. Although using personal contacts to help may save money, and I mean "may" save money, there a many down sides as you have experienced. Finding a solid team of go-to professionals will make the rehab process go much better. Time is money especially when holding an empty property.
@Kyle Stanley ,way to go, congrats!
Awesome work @Kyle Stanley !
@Kristopher Kyzar Thanks. Very exciting!
@Bradley Chapman For sure. Catching something on the outskirts of Park Circle will do great in a few years I think.
@Dmitriy Fomichenko Thank you!
@Bruce Day Absolutely. That is a big focus moving forward is working to find my all star team.
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