Purchase Date: 7/21
The Deal:
While we were finalizing a large refinance package (that included the purchases of both Laurel & Addison), we were also in the middle of trying to close on Brookmede, as well as a package of homes with a partner. About a week out from that closing we found this property. Not only did this look like a great deal, but it also sat right next door to another property we owned. At first, the property was listed for $69,999, which seemed like a deal, since the ARV would most likely be in the $135,000+ range, and based on my estimates, it was going to take about $25,000 to get this property to where we would want it. With those prices in mind, I should be able to do the entire rehab, refinance the property, and get all my money out, this looked like a steal!
The problem I was having was finding the money. I closed on the refinance package we had been working on and the Brookmede closing was about a week or two out, I needed to find $70k and I needed to find it fast. The listing showed up on a Wednesday and by Friday evening when I went home for the weekend I still hadn’t been able to put secure the financing. Monday morning my realtor called to inform me that the sellers had dropped the price all the way down to $49,900! I told my realtor to submit the offer ASAP and I would find a proof-of-funds letter no matter what it took! We put in a full-price offer, AS-IS, with a cash closing in 10 days. I submitted the offer around 5 PM that day, they responded by 10 AM the next day that they would accept my offer!
How Did We Find The Property?
We found this property through the Zillow App. We received a notification alert as soon as this property hit the market, based on search criteria that we had set up in the app.
How Did We Fund The Property?
A Private Money Investor lent us the entire purchase price of the property. Our lender wired the money directly to the title company and funded the purchase price 100%! We were able to cash flow some of the repairs, the rest of the rehab costs we were able to use leverage using credit and a small personal loan. The goal is to refinance this property into a portfolio loan with multiple other properties and pay off the investor.
How Did We Fix The Property?
For this property, the focus was inside the house. The previous owners had already replaced the windows, siding, and roof. We wanted to work on getting the inside rent-ready as soon as possible. We did do some exterior landscaping and clean-up, but it was very minimal.
Before Video
Updates Done:
- We added a new half-bathroom upstairs
- We added a walk-in closet to one of the upstairs bedrooms
- We installed all new lights throughout the house
- Removed all the old carpet & installed all new vinyl plank
- We replaced the shower, toilet, double sink w/vanity, mirrors, & all new bathroom racks
- We painted the entire interior of the house
- We painted all the cabinets, added some new cabinets, new hardware & brand new countertops
- All new Whirlpool stainless steel appliances
- We replaced all the outlets & covers, as well as the light switches & covers
- And much, much, more!