I’ve been quiet at PMC for a while, busy with a variety of things, the most time-consuming of which is my son being out of school, followed by travel, a few medical issues (including a major surgery coming up in August), as well as a couple of rehabs I’ve had going on in Ohio this summer. I’m heading out of town again in the morning, but I wanted take a few minutes to share an update with my PMC colleagues regarding a successful rehab-to-rent. It’s not quite a BRRRR, as I’ve been holding off on refinancing because the property cash flows about $200 more per month before doing the cash-out and we are holding off until ready to re-invest the cash out (which probably won’t be for another couple of months, owing to the impending surgery).
Subject Property: 3284 Kildare Road
Purchase Price: $120,000
Rehab Cost: $30,870
Estimated ARV: $225,000
Leased: 7/31/2023 (Move-in 8/15)
This area of Cleveland Heights is a solid B-class neighborhood (A- adjacent), notable for its proximity to restaurants and other amenities on Lee Rd. There is still some good inventory around here and we will seek out more fixer-uppers nearby.
The house was purchased by another investor who spent a long time trying to fix it up on his own, according to neighbors, who were glad to see it change hands and have it turned around quickly, alongside a number of other rehabs occurring on Kildare Rd at the same time. It’s kind of a hot area.
We’ve got some decent terms from lenders for a 30-year fixed on a cash-out refi at 75%, which will set us up for the next transaction when we are ready to proceed. Looking forward to more of these.
I also have a triplex undergoing a more extensive rehab right now for a flip ($45k PP, $100k rehab, $200k ARV, purchased in April). This project was delayed in July after getting about halfway there, due to some equipment and wiring theft from the site, which has since been secured and a claim has been filed. We still ought to be able to finish before fall to sell this to an investor looking for cash flow, with total rents projected just north of $3k/mo (1.5% rent:value).
I didn’t see a way to post pictures here, but I do have some up on Instagram. Username is @Homes_on_the_gram.
Please feel free to message me for more information.