Dennis Hoffman Rehab Deal

 

Dennis Hoffman Rehab Deal

Accrete Synergy Group in Denver, CO
Dennis Hoffman with Dennis & Heidi Hoffman, Carol & Warren Krantz

We bought this as a bank-owned property and held it as a rental for a number of years. We bought for 132,000 with conventional financing (ARM) and cash-flowed between 350-700/month depending on the interest rate. We cleaned it up with new kitchen cabinets and counters and appliances and paint are carpeted the entire house. $18,000 for repairs. Then the market crashed so we kept as a rental. When we went to sell last year found that the foundation was bad, so we took it off the market and refinanced (for $190,000)to take cash out. A fixed foundation placed new vinyl siding, paint, and carpet. Placed back on market and had multiple offers and sold for slightly over asking price of $360,000.

Rehab Details

Property City: Denver
Purchase Price: $132,000
Repair Costs $18,000
Holding Costs: $15,000
Sale Price: $360,000

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

We used the checklists to follow the FortuneBuilders model. Then we used the Rental Bootcamp information and the PIC to learn about other areas for investing and decided to complete a 1031 exchange. Now we are buying 2 4-plex's (8 doors) and using the profit from the sale to obtain these and tax defer the gains into the 2 units. We will now cash flow 700/month per unit and when rents are raised to market value, will cash flow approx 1800/month per unit. Once we follow the C3X model from the rental Bootcamp and pay down mortgages we will refi and take out cash to obtain more.




Before & After Photos