After we had finished the rehab on the 4-unit I discussed several days ago, we acquired 3 single family homes at Harvey’s Lake, PA – all off market.
The 1st house we bought from an owner who found us through a Google Search. It was a vacation home he wasn’t using and wanted to sell. The house came fully furnished without deferred maintenance. To date, this is the only property we did not have to do any rehab to other than switching out the 3 BR carpets to hardwood flooring. We bought it for $126k and it is currently worth close to $300k. We have already taken out a HELOC on this property and used this money to buy 2 other SFH at the Lake. We also successfully challenged the taxes on this ourselves and got the property taxes lower by several thousand $ / year.
The other 2 properties were gut jobs. The 2nd house is the only one in our portfolio that is still undergoing a rehab. The other home we completed last summer & the tenants just signed a lease for another year. Both were bought together from another investor for $94k. We plan on stabilizing the other and then refinancing these vs selling as a package.
Financials: Cash flowing $600/mo for one and $1800/mo for the other. 3rd is $0 as still undergoing rehab.
Pitfalls: Contractors are good until they’re not. One contractor left halfway through our project which has stalled our end date. You need to account for unexpecting holding costs in purchases.
See below pics of the rehabs on 2/3 of the houses.
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