All Forum Posts by: Robert A Donegan

Hi Santiago. Thank you for the post and please let my clarify some details. I purchased the property for 216k and took out a loan with a 16k down payment. After the rehabilitation, I was able to refinance the house with a lower interest rate and use the equity to go from a FHA loan to a conventional loan. Now that I didn't have to pay the PMI I rented the property out, I stayed at home (with my parents) for a year and saved as much as I could. I then took the money saved and put a down payment on a condo house hack. After selling the condo, I took the proceeds and payed into the principal of my house so now the rental property that I'm holding has nearly a 100% positive cashflow. I'm interested in your experiences also. Do you have an active portfolio?

Investment Info:

Single-family residence buy & hold investment in Lemont.

Purchase price: $200,000
Cash invested: $200,000

Buy and hold strategy. This home was my first chapter in my real estate portfolio. I learned a lot in the rehabilitation process as well as the property management process.

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

I initially was convinced by my mom to purchase a single family home as a sound investment. It was shortly after the bubble burst in 2008 and I decided to look for something that needed work.

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

I used the services of a licensed real estate agent.

How did you finance this deal?

I financed the deal through a bank.

How did you add value to the deal?

I put a lot of work into it. I updated the kitchen with new tile, cabinets, countertops, appliances and did a wall cutout. I installed new fans in all of the bedrooms. I updated the basement by adding laminate flooring and built a bar and added some light fixtures. I painted throughout the interior and exterior and worked on the landscaping. Having a strong support group is essential when taking on these projects. I'm very thankful for my family.

What was the outcome?

So far so good. I have good tenants and they maintain the property well. Its good to stay vigilant but also to try to take things one day at a time. Overall, I'm pleased with this investment.

Lessons learned? Challenges?

Take small bites and take on one project at a time if you can. Patience is so necessary in this game.

Investment Info:

Condo fix & flip investment in Arlington Heights.

Purchase price: $80,000
Cash invested: $40,000

This was a 1 bedroom 1 bathroom fix and flip using the house hack strategy.

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

The location was valuable and the the condo was close to work.

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

I reached out to a real estate agent that was referred to me by a family member.

How did you finance this deal?

I financed through a typical mortgage lender.

How did you add value to the deal?

I rehabbed the entire unit. I installed vinyl plank flooring throughout. I installed granite counter tops in the kitchen, installed a new backsplash, painted the cabinets, added a butcher block counter top in the pantry closet, painted the interior, retiled the bathroom floor and surround for the tub and added a new vanity. I painted the closet doors and installed new hardware also.

What was the outcome?

In one year I made a gross profit of 22k.

Lessons learned? Challenges?

Early on in the flip, I had to deal with issues coming from the upstairs neighbor. I had to work with the association to resolve the issues with a positive outcome. Persistence overall is the key to success in everything.

I imagine that things will ease as soon as lumber production goes back to pre covid output as well as increased interest rates being implemented to balance the rising inflation.