Updated over 4 years ago on .
BRRRR Property in Milton, Delaware
Investment Info:
Single-family residence buy & hold investment in Milton.
Purchase price: $181,000
Cash invested: $25,000
2 bedroom, 1 bathroom cottage on sub dividable lot. Renovated home, added a master suite in the attic making it a 3 bedroom, 2 bathroom. Refinanced into 30year fixed. Put long term tenant in house. Cash flow is $300/month. Sub divided the lot into two lots. Going to build a house on the new lot to have another rental property.
What made you interested in investing in this type of deal?
House had great potential as a rental, lot could be sub divided creating an opportunity to build another home. Town it's located in is set to experience significant appreciation growth in the next 5-10 years.
How did you find this deal and how did you negotiate it?
MLS. Used an escalation clause and waived all contingencies.
How did you finance this deal?
Conventional loan.
How did you add value to the deal?
Renovated house. Added bedroom and bathroom.
What was the outcome?
Excellent cash flow and long term rental with low cap ex. Opportunity for second rental on partitioned lot.
Lessons learned? Challenges?
House was built in 1952 so there were some issues with electrical and plumbing which cost us some money but we were prepared for that having a lot of experience with older homes. COVID also hit right after we settled so we ended up doing some of the project ourselves since we had the time.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Pete Green with Atlantic Bay Mortgage is the best mortgage broker here at the beach.
- Shawn McDonnell