Townhouse buy & hold investment in Middletown.
Purchase price: $75,000
2bed 1.5bath townhome in Middletown, PA. Used a HELOC to fund the deal. (Thats why I say "semi BRRRR" since its not cash bought) A property across the street just sold for 127k, so I should be able to do a cash-out Refi in about a month to payoff most of that HELOC, which I will reinvest in the next deal. It will also increase cashflow by $50 per month.
What made you interested in investing in this type of deal?
Townhomes are attractive as there are no tenants on top of each other. There is also less outside maintenance as I will be doing lawn upkeep myself in the beginning to keep my costs down.
How did you find this deal and how did you negotiate it?
Through inside the real estate office I work in.
How did you finance this deal?
HELOC on my primary residence
How did you add value to the deal?
Reno and being able to get to the deal before anyone else, allowing for a good deal at the outset.
What was the outcome?
Currently cashflows $200 despite the monthly HELOC payments. Will do a cash-out refi in about a month which should pay off the HELOC (So I can reinvest it in the next deal). Cashflow should also increase by about $50.
Lessons learned? Challenges?
Use more subcontractors instead of relying mostly on sweat equity. This allows for a faster reno, less time to get the property rented, and thus less holding costs.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
As an agent, I worked for myself. So if you have any realtor needs, I can help.
Congrats! It looks like you have a good deal here. Great Cashflow aswell
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