Case Studies

RFG is a private money lender that lends to real estate investors in 23 states across the country.  Here are just a few of the successful rehab projects our clients have tackled.  From single family homes to multi-unit apartment buildings, every client did their research, put in the sweat equity, and in the end turned a handsome profit.  Each is a lesson in savvy business decision making.

Case Study #1: Norwood Home Fix-to-Flip Project

Client:  Richard O. – RFG Pro

Property Location:  Norwood, PA

Property Description:  Single Family Residence

Purchase Price of the Property:  $61,000

Cost to Rehab Property:  $44,500

Amount of the Loan:  $105,500

Original Appraisal Value of Property:  $65,000

Appraisal Value of Property After Rehab:  $176,000

Sale Price:  $175,000

Net Profit:  $30,000

This project was a very extensive rehab from the start.  When Richard purchased the distressed property, the kitchen and bathroom were already gutted, so he had to start from scratch in both of those key rooms.  What started out as a modest 3 bedroom/1 bath single family home with an unfinished attic, Richard turned into a gorgeous 4 bedroom/2 bath home by finishing the attic with a bedroom and full bath.  The unfinished basement only had 5” ceilings, so he did not bother to finish that space, but he did move the laundry from the basement to the first floor, which was a huge improvement.  Overall, the scope of the rehab was daunting, and there were cost over runs and some delays, but Richard’s improvements paid off handsomely, and he was able to quickly sell the home at a profit.  Great job, Richard!

“Rehab Financial has helped me get several deals done despite some out of the ordinary situations.  Their flexible draw schedules and helpful team made sure my contractors got paid on time and kept the project moving.  The process was very easy.”

— Richard O.

Case Study #2:  Drexel Hill Row Home Fix-to-Flip Project

Client:  Richard O. – RFG Pro

Property Location:  Drexel Hill, PA

Property Description:  Row Home, End Unit

Purchase Price of the Property:  $62,500

Cost to Rehab Property:  $39,600

Amount of the Loan:  $98,800

Original Appraisal Value of Property:  $65,000

Appraisal Value of Property After Rehab:  $152,000

Sale Price:  $165,000

Net Profit:  $51,000

This 4 bedroom/2 bath home with a paved driveway in front had a great location as an end unit.  The walkout basement was originally a hair salon, but the township was not willing to allow the sale unless the basement reverted back from a commercial space into a private space.  Richard agreed, and started to work.   He replaced all of the plumbing and wiring.  The kitchen became almost a complete gut.  The drywall stayed in place, but he replaced everything else, including cabinets, appliances, countertops, and flooring.  He was able to sell it for more than $10,000 over the new appraisal value, and net a tidy profit.  Hard work pays off!

Case Study #3:  Woodlyn Home Fix-to-Rent Project

Client:  Richard O. – RFG Pro

Property Location:  Woodlyn, PA

Property Description:  Single Family Residence

Purchase Price of the Property:  $126,000

Cost to Rehab Property:  $30,600

Amount of the Loan:  $152,750

Original Appraisal Value of Property:  $135,000

Appraisal Value of Property After Rehab:  $235,000

Monthly Rents Charged After Rehab: $2,400 ($2,000 for home, $400 for detached garage)

Richard doesn’t shy away from a challenge, so he took on converting a non-conforming duplex back into a single family home.  By moving a few walls to adjust the layout, the each floor boasted 2 bedrooms/1 bath, and their own individual kitchens, effectively turning the second floor into an in-law suite.  For each kitchen, he replaced the laminate countertops with granite, and painted the existing cabinets.  Richard also improved the functionality of the space by creating a laundry room out of unused space on the first floor.  He rented the home to a multigenerational family, who wanted to live together, but still have their own kitchen spaces.  It was the perfect fit!  Plus, not only was Richard able to rent the home, he was also able to rent the detached garage.  Now that’s savvy!

Case Study #4:  Glenolden Home Fix-to-Rent Project

Client:  Richard O. – RFG Pro

Property Location:  Glenolden, PA

Property Description:  Single Family Home

Purchase Price of the Property:  $60,000

Cost to Rehab Property:  $18,300

Amount of the Loan:  $78,300

Original Appraisal Value of Property:  $60,000

Appraisal Value of Property After Rehab:  $130,000

Monthly Rents Charged After Rehab: $1,400

This 3 bedroom/1 bath single family home was in good shape when Richard bought it.  He immediately recognized it as a very simple rehab project, and snapped it up.  The house was covered in paneling, so the first thing Richard did was replace all of it with drywall.  In the kitchen, he added new cabinets, and replaced the laminate countertops with granite. He replaced the plumbing fixtures as well as all of the electrical outlets and switches.  The only additional upgrade required by the inspector was to replace 20’ of curb along the front of the property.  The new tenants loved the clean look of the home, and Richard netted steady monthly income right away.  He’s got a great eye for investment properties!

Case Study #5:  Atlanta Apartment Building Fix-to-Rent Project

Before

After

Client:  Ayesha S. – RFG Pro

Property Location:  Atlanta, GA

Property Description:  12-Unit Apartment Building

Purchase Price of the Property:  $850,000

Cost to Rehab Property:  $167,495

Amount of the Loan:  $1,017,495

Original Appraisal Value of Property:  $1,020,000

Appraisal Value of Property After Rehab:  $1,640,000

Monthly Rents Charged After Rehab:  $17,400

Ayesha’s goal was to purchase a multi-unit apartment building, where the rents would more than cover the monthly mortgage, so the investment would pay for itself and provide a small passive income.  After a long search, she purchased a 12-unit apartment building in a great area of Atlanta.  The seller was extremely motivated, and the property had a very reasonable asking price.  The building itself was in good shape, and only required cosmetic upgrades.  Once the upgrades were made, Ayesha was able to double the average rent for each unit, charging an average of $1,500 per month per unit.  Her fix-to-rent advice: “Never underestimate tenants or the process of evicting them.  If you are not an experienced property manger, don’t take it lightly.”  Thanks for the tip, Ayesha!

“RFG is a great lender.  The whole process is so smooth.  No complaints!”

— Ayesha S.

Case Study #6:  Harrisburg Home Fix-to-Flip Project

Before

After

Client:  Demery G. – RFG Pro

Property Location:  Harrisburg, PA

Property Description:  3-Story Twin Home

Purchase Price of the Property:  $58,000

Cost to Rehab Property:  $39,615

Amount of the Loan:  $87,750

Original Appraisal Value of Property:  $58,000

Appraisal Value of Property After Rehab:  $135,000

Sale Price:  $165,000

Net Profit:  $45,000

Demery did her homework, and found a promising fix-to-flip project in a 3-story twin home in the Harrisburg area.  The home was about in foreclosure.  Some updates had been started, but were never completed.  There was wallpaper everywhere, but the house had nice bones — hardwood floors, clawfoot bathtub, and a clay tile roof.  After her offer had been accepted, it was discovered that the roof required $10k in repairs.  While that would have sunk most projects, Demery’s detailed budget had built in a margin for contingencies.  She moved forward with the rehab, and netted a handsome profit of $45k!

Case Study #7:  Alexandria Home Fix-to-Flip Project

Before

After

Client:  Jason W. – RFG Pro

Property Location:  Alexandria, VA

Property Description:  Single Family Home

Purchase Price of the Property:  $360,000

Cost to Rehab Property:  $39,575

Amount of the Loan:  $336,700

Original Appraisal Value of Property:  $365,000

Appraisal Value of Property After Rehab:  $518,000

Sale Price:  $483,000

Net Profit:  $40,000

Jason is a successful house flipper with 8 property flips under his belt.  Northern Virginia is a very competitive real estate market, so there is a low inventory of foreclosures and short sales.  Jason’s strategy is to search for under-built homes in highly desired locations, and vastly improve them without out-pricing the neighborhood.  Jason picked up this outdated property, knowing that comps in the neighborhood had recently sold for almost $200k more than Jason’s purchase price.  He invested time and money in creating an open floor plan for the first floor, and adding dormers to the front and back of the house to open up the smaller feel of the second floor.  Lastly, he installed a fence in the backyard, adding pet-friendly appeal to this home.  Great idea!

Case Study #8:  Flemington Home Fix-to-Flip Project

Before

After

Client:  Jennifer P. & Louis A. – RFG Pro

Property Location:  Flemington, NJ

Property Description:  Single Family Home

Purchase Price of the Property:  $140,299

Cost to Rehab Property:  $110,224

Amount of the Loan:  $250,523

Original Appraisal Value of Property:  $180,000

Appraisal Value of Property After Rehab:  $390,000

Sale Price:  $395,000

Net Profit:  $75,000

Jennifer and Lou chose a very unique property for their fix-to-flip project.  They found a small home on 4 acres of land that a bank was holding in foreclosure.  The property was surrounded by gorgeous larger properties and fully-equipped horse farms.  That meant their project was ideally suited for adding value.  The 4 acres included land with pastures, woods, a creek, a small horse barn, and a smaller house that could be improved to more closely match the value of the properties around it.  They added significant value by finishing the basement in the main house, and rehabbing the barn.  The septic system ended up needing $15k more work than first anticipated, but their conservative budgeting meant this extra expense didn’t sink the project entirely.  They found a buyer who paid their full asking price after only 3 days being listed.  Great work!

Case Study #9:  Jacksonville Home Fix-to-Flip Project

Before

After

Client:  Clive D. – RFG Pro

Property Location:  Jacksonville, FL

Property Description:  Single Family Home

Purchase Price of the Property:  $132,107

Cost to Rehab Property:  $36,740

Amount of the Loan:  $146,250

Original Appraisal Value of Property:  $150,000

Appraisal Value of Property After Rehab:  $225,000

Sale Price:  $250,000

Net Profit:  $50,000

Clive’s goal was to be a full-time flipper.  Wisely, he kept his day job while he tackled his first few flips, and learned a lot about the real estate investment industry.  Eventually he left his job to focus solely on rehabbing, and sets his sights on 12 flip projects per year.  He’s become an expert at project management, scheduling contractors to overlap if possible.  He thinks any flip should take less than 6 weeks to do the work needed on the property.  In order to account for the variability in the business, Clive takes a minimal salary and rolls the rest of the profits back into the investment.  He’s found even more savings by getting his real estate license, and avoiding a lot of fees on each deal.  Smart!

Case Study #10:  Cranford Home Fix-to-Flip Project

Client:  Ernesto O. & Anna K. – RFG Pro

Property Location:  Cranford, NJ

Property Description:  Single Family Home

Purchase Price of the Property:  $390,000

Cost to Rehab Property:  $131,670

Amount of the Loan:  $435,500

Original Appraisal Value of Property:  $405,000

Appraisal Value of Property After Rehab:  $670,000

Sale Price:  $700,000

Net Profit:  $100,000

Ernie and Anna have successfully flipped 6 properties in NJ.  They have kept their day jobs, and have relied heavily on a strong team of contractors, realtors, and brokers.  “The more trustworthy people you have on your side, the more likely you are to be successful!” said Anna.  Ernie and Anna say the biggest holdup on their projects is the permitting process.  In NJ, this can take several weeks or months.  It’s a good thing that your business is running efficiently if you can get work done faster than you can get the permits!  As they gain more experience as real estate investors, their tentative plan is to transition to be full-time flippers within 5 years.  Good luck, guys!

Case Study #11:  Philly Home Fix-to-Rent Project

Case Study #12:  Philly Home Fix-to-Rent Project

Client:  Travis R. & Brian G. – RFG Pro

Property Location:  Philadelphia, PA

Property Description:  Single Family Home

Purchase Price of the Property:  $50,000

Cost to Rehab Property:  $33,295

Amount of the Loan:  $83,295

Original Appraisal Value of Property:  $50,000

Appraisal Value of Property After Rehab:  $143,000

Monthly Rents Charged After Rehab: $950

Travis and Brian found one of their many investment properties close to a growing university.  By looking at enrollment trends over the last several years, and seeing an increase of several hundred students per year, it became obvious that the market values would be rising with this surge in demand.  One of their goals was to be the premier section 8 landlord in the area.  They built a team of experts in each trade that they rely on for every fix to rent.  They have also developed a video walkthrough and 3D imaging technique that their team uses to stay in constant communication.  They might have 5 or 6 projects going on simultaneously that they can check in on digitally, saving them time and money.  Last but not least, Travis and Brian believe the extra work and due diligence on the front end screening of renters will pay huge dividend down the line.  RFG has partnered with Travis and Brian on over 100+ projects and considers them on of the leaders in the fix to rent space.  Very Savvy!

“We view RFG as our short-term and long-term partner.  They are one of the best lenders in the business.”

— Travis R.

Case Study #12: Norwood Duplex Fix-to-Flip Project

Client:  Angelo G. – RFG Expert

Property Location:  Norwood, PA

Property Description:  Duplex

Purchase Price of the Property:  $66,000

Cost to Rehab Property:  $109,000

Amount of the Loan:  $175,000

Original Appraisal Value of Property:  $75,000

Appraisal Value of Property After Rehab:  $270,000

Sale Price:  $320,000

Net Profit:  $100,000

This three-story duplex was a top-to-bottom rehab that would have intimidated many flippers, but not Angelo.  He jumped in with a crowbar, and took the entire building down to the studs.  He replaced all the electric, the plumbing, and the flooring.  He put in new drywall throughout, and installed two new kitchens and three new bathrooms.  The layout of the duplex was a 2 bed/1 bath apartment on the 1st floor, and a 3 bed/2 bath apartment on the 2nd and 3rd floors.  After the rehab was complete, he held on to the property and rented both apartments.  But he did such a great job on the rehab that 6 months later someone offered to buy the property as a turnkey rental for themselves.  Angelo made a tidy profit on the project, and funneled the funds into his next flip.  Way to go, Angelo!

“You can’t beat RFG’s deal — 100% loans make it easy.”

— Angelo G.

Case Study #13: Philly Quad Fix-to-Rent Project

Client:  Angelo G. – RFG Expert

Property Location:  Philadelphia, PA

Property Description:  Quad

Purchase Price of the Property:  $193,500

Cost to Rehab Property:  $110,050

Amount of the Loan:  $303,550

Original Appraisal Value of Property:  $100,000

Appraisal Value of Property After Rehab:  $467,000

Monthly Rents Charged After Rehab: $4,500

This mixed-use property is hopping with activity.  A 3-story building, the first floor is a 1,000 sq ft commercial space, and the 2nd and 3rd floors house four 1 bed/1 bath apartments.  Angelo did a “vanilla box rehab” to the commercial space, meaning he took the space down to the studs, and installed new drywall with white paint to turn it into a clean “vanilla box.”  It was originally a hair salon, but Angelo replaced the buckled laminate floor with a nice tile, added lighting, upgraded the public bathroom facilities to two bathrooms, and rented the space out as a convenience store for the neighborhood.  For the four apartments, Angelo installed a new kitchen and bath in each, along with new flooring, paint, and windows.  Overall, the building is a beautiful addition to the neighborhood!

“I feel like RFG has grown with me.  When I was first learning the flipping business, they had me focus on single family homes.  After I had some successes, I brought a mixed-use property to them that had a commercial space on the first floor.  They listened to my plans, and approved my loan!”

— Angelo G.

Case Study #14: Philly 9-Unit Fix-to-Rent Project

Client:  Angelo G. – RFG Expert

Property Location:  Philadelphia, PA

Property Description:  9 units

Purchase Price of the Property:  $248,750

Cost to Rehab Property:  $102,250

Amount of the Loan:  $351,000

Original Appraisal Value of Property:  $275,000

Appraisal Value of Property After Rehab:  $540,000

Monthly Rents Charged After Rehab: $5,500

This 9-unit complex was a giant undertaking, but Angelo was up for the challenge.  The building features four 2 bed/1 bath apartments, and five 1 bed/1 bath apartments.  It was only at 50% occupancy when Angelo bought it, so he worked his way through the building slowly, upgrading each apartment when it was empty with new drywall, paint, flooring, plumbing, and small electrical work.  The building is now fully occupied, and Anthony is turning his attention to the 4 garages that are part of the building.  With a little clean up work, he plans to rent them out for $600/month in addition to the rent he gets for the 9 apartment units.  Now that’s a great idea!

“RFG is a great partner to have in the business.  They are very flexible, and open to new properties I bring to them.”

— Angelo G.

Case Study #15: Philly Duplex Fix-to-Flip Project

Client:  Angelo G. – RFG Expert

Property Location:  Philadelphia PA

Property Description:  Duplex

Purchase Price of the Property:  $60,000

Cost to Rehab Property:  $102,614

Amount of the Loan:  $162,614

Original Appraisal Value of Property:  $75,000

Appraisal Value of Property After Rehab:  $265,000

Sale Price:  $350,000

Net Profit:  $130,000

This duplex had great “bones,” so Angelo jumped on the property when it came on the market.  The 1st floor was a 2 bed/1 bath apartment, and the 2nd and 3rd floors was a 3 bed/2 bath apartment perfect for a bigger family.  Angelo focused on the basics, and replaced the electric, plumbing, and flooring.  He repainted the interior of both apartments in a neutral shade so it would be easy for any prospective tenant to envision themselves there.  While he was originally planning on holding the property as a long-term rental, Anthony instead opted to make this a quick flip, and reinvest his profits into more properties.  Now that’s a long-term plan for success!

“RFG took a chance on me when I was a first-time flipper.  I love working with them!”

— Angelo G.

Case Study #16: Philly Triplex Fix-to-Rent Project

Client:  Angelo G. – RFG Expert

Property Location:  Philadelphia, PA

Property Description:  Triplex

Purchase Price of the Property:  $40,000

Cost to Rehab Property:  $49,500

Amount of the Loan:  $89,500

Original Appraisal Value of Property:  $60,000

Appraisal Value of Property After Rehab:  $140,000

Monthly Rents Charged After Rehab:  $3,100

This 3-floor house was a beauty, so Angelo was excited to start work on it.  Each floor was it’s own apartment — the 1stand 2nd floors each featured a 2 bed/1 bath apartment, the 3rd floor featured a 1 bed/1 bath apartment.  Angelo took the entire triplex down to the studs, and replaced the electric, plumbing, and flooring.  Once drywall was back in place, and 3 new kitchens and bathrooms had been installed, Angelo was able to quickly rent all three apartments  The steady income is helping him to quickly pay down the mortgage.  Way to go, Angelo!

“Brian at RFG is my guy!  He is happy to talk to me about any property I see potential in.  I appreciate the support!”

— Angelo G.

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