All Forum Posts by: Sean McDonnell

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $235,000
Cash invested: $100,000

Purchased off market at 235k. House was a total gut job, but the roof was only 5 years old, HVAC only 7 years and the house had a newish deck. We purchased with a conventional loan, 20% downpayment. We did a interior remodel putting about 100k into the rehab including furnishings. The house appriased 8 months after our purchase at 472k. We did a cash out refinance and pulled out 140k which will serve as a down payment for 2 new construction townhouses. We are now renting the house out on Airbnb.

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

I was looking for our first value add deal for 2 years before this.

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

Saw a dinky sign posted in the yard as I was driving by. I called the owner and put in a offer sight unseen without going inside. He said he had an offer at 230k so I told him I would do 235k.

How did you finance this deal?

Conventional loan to purchase. The house hadnt been updated since it was built in the 70s but it was livable.

How did you add value to the deal?

We gutted it down to the studs, added another bedroom and did a nice remodel with lvp flooring, granite counter tops, stainless steel appliances, and a nice bathroom.

What was the outcome?

We were able to pull almost all of the cash out after the refinance. We left 20k in the property which we were fine with.

Lessons learned? Challenges?

Initial rehab estimate was 70k, turned out to be 90k once we broke into the walls and found the windows all needed to be replaced.

Hey @Mitchell Mahnken! We host a real estate investing meetup once a month in Jacksonville and in Surf City. The Surf City meetup in this coming Tuesday, 4/12 @ 6 PM at 112 Triton Lane, Surf City. Hope you can make it! Also, let me know if you want to grab coffee one day soon and talk investing. 

@Steve Knipping

Where are you looking to invest in STRs? I am right up the road from you and have a few STRs up here in Surf City, NC. I would be happy to grab a coffee and talk about my experiences self managing STRs vs hiring a property manager. 

Did you mean 30% Cash on cash return? There are many properties here in NC that are on the market that will give you a 3% cash on cash return after management fees. 

Come learn from our friend and local investor @Jason Velie on how he has built his flipping business! Jason is a great guy and very willing to share his experiences and lessons learned with our community. Learn -> Network -> Grow

Join us to learn from local wholesaler and investor, Aaron Brantley on how he uses creativity and relationships to work with off market sellers. This event is at The Cove which is across the street from the Salty Turtle tap house. Hope to see you there!

Come learn from Tim Horst with Angel Oak Home Loans about different lending options they offer to their investor clients! Hope to see you there :)

Has anyone else been following what is going on with Michelle Malkin getting banned from using Airbnb for allegedly being associated with a 'known hate group' and speaking at a 'white nationalist conference'? Interested in hearing your all thoughts on this matter and if you agree with Airbnb de-platforming someone for their political opinions. 

Tenzin, Congrats on your first deal! That is awesome! What are your goals for this year?

@Saul Lechuga Where are you located? The biggest problem most agent have when starting out is lead generation. I would start that now! Go buy the book The 7 Levels of Communication and implement the practical advice from that book. Network with people in your market and start making a lot more friends. It takes a while to build a business largely fed by referrals but that is the most cost effective lead generation strategy in my opinion. Good luck getting started!