63 W 5th St

[Kim Aherne]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $114,000
Cash invested: $63,000

Our first buy, rehab, refinance, rent. Refinanced it for $218,000 in August 2022.

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

Bigger Pockets and dreams of RETIREMENT!

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

MLS / HUD. Did not negotiate it (learner error). We probably could and should have purchased it for $10,000 less than we did.

How did you finance this deal?

HELOC and our cash.

How did you add value to the deal?

1. New roof, gutter guards soffits and fascia
3. New water main into the house from the street
3. New electric hot water heater (50 gallon, disconnect summer/winter hookup on boiler)
4. Fixed the outgoing pipe to the oil tank to adhere to current standards and regulations.
5. New carpet & tile floors
7. Re-did the bathrooms (tiled the bathtub surrounds, new bathtubs, new toilet, fixed the pipes leading into the tubs, new overflow and diverter and added shut off valves).
8. Removed osmosis

What was the outcome?

Refinanced the property for $218,000 and rented it two week slater for $1925/month.

Lessons learned? Challenges?

TIME!! We should have hired painters instead of doing it ourselves. It would have saved us a lot of money.
For plumbing, instead of waiting on the company we wanted to work with, we should have not waited on them and instead just got the work done faster with another company able to come in and get the work done faster. We waited for two months on the company we liked working with since they were super booked.
Got rid of the general contractor we were using faster.

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

Andrew Wilson - Real estate agent
Mark Ciccarone - electrician
Elmer Stoltzfus - roofer
Ray Ross Plumbing - plumbing & water main replacement
JFK Plumbing - sewer line replacement
M&M Fashions & Flooring - carpeting
Scott Zajac - insurance
Mike Thompson - refinance