Case Studies

Case Study #17: Philly Mixed-Use Triplex Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  Triplex

Purchase Price of the Property:  $55,000

Cost to Rehab Property:  $133,000

Amount of the Loan:  $188,000

Original Appraisal Value of Property:  $65,000

Appraisal Value of Property After Rehab:  $292,000

Monthly Rents Charged After Rehab:  $2,900

This mixed-use triplex was an interesting project.  The 1st floor featured a commercial space, and the 2nd and 3rd floors each featured a 3 bed/1 bath apartment.  Both apartments were spacious enough to house a family, so Al knew this would be a great investment.  He did a total gut to the building, and installed new electric, plumbing, heating, and carpet throughout, as well as a new kitchen and bath to each apartment.  Al also added a new bathroom to the commercial space, and quickly rented it out to a hair salon.  Great job, Al!

“When they say they’ll do it, RFG gets it done.”

— Al C.

Case Study #18: Philly 7-Unit Building Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  7-Unit Apartment Building

Purchase Price of the Property:  $70,000

Cost to Rehab Property:  $115,000

Amount of the Loan:  $185,000

Original Appraisal Value of Property:  75,000

Appraisal Value of Property After Rehab:  $500,000

Monthly Rents Charged After Rehab:  $6,000

Al C. has been in construction all his life, so when he came across a 7-unit rental property in the Temple University Hospital area selling for $55k, he knew that this was a project he could sink his teeth into.  The configuration of the building was two 3 bed/1 bath apartments, two 2 bed/1 bath apartments, one 1 bed/1 bath apartment, and two studios.  The property needed a top-to-bottom rehab, updating kitchens, bathrooms, new carpeting, and numerous exterior repairs.  RFG’s quick approval process was crucial for Al, who said that in the fast-moving Philadelphia real estate market, every day spent waiting for loan approval could derail his project.  Within one week, Al had secured funding, and was able to purchase the property and start the rehab.  It was the first big step on the road to success!

“RFG is very professional.  They treat me like a partner.”

— Al C.

Case Study #19: Philly Mixed-Use Quadplex Building Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  Mixed-Use Quadplex

Purchase Price of the Property:  $85,000

Cost to Rehab Property:  $180,000

Amount of the Loan:  $265,500

Original Appraisal Value of Property:  90,000

Appraisal Value of Property After Rehab:  $425,000

Monthly Rents Charged After Rehab:  $5,000

This mixed-use building was located on a bustling section of Chestnut Street, so Al knew the property would be very sought after if he put in the sweat equity to rehab and upgrade it.  The configuration of the building was a commercial space on the first floor, three 1 bed/1 bath apartments, and one 2 bed/1 bath apartment.  Al took the building down to the studs, and installed new drywall, electric, plumbing, heating, and flooring.  He rented the commercial space to a tax office, and quickly rented out the four apartments to good tenants.  It’s a great property that now provides steady income.  Smart thinking, Al!

“RFG is great!  They expedite paperwork processing and funding, so I can get moving on the project ASAP.”

— Al C.

Case Study #20: Philly Quadplex Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  Quadplex Building

Purchase Price of the Property:  $76,500

Cost to Rehab Property:  $112,200

Amount of the Loan:  $188,400

Original Appraisal Value of Property:  $77,000

Appraisal Value of Property After Rehab:  $310,000

Monthly Rents Charged After Rehab:  $3,500

This quadplex was in an excellent location on a high-profile street in Philly, so Al jumped at the chance to purchase it.  The four 1 bed/1 bath apartments were mirror images of each other, so it was easy for Al to standardize his rehab plans.  He installed new electric, plumbing, flooring, and an electric heating system throughout the entire building.  He put in a new kitchen and bathroom in each apartment, with new appliances.  New paint in every room was the finishing touch.  Al rented the place out in the blink of an eye, and his four tenants are very happy there.  Now that’s efficient!

“Everyone at RFG is so personable.  No matter how complicated a project may be, it’s a pleasure to work with them.”

— Al C.

Case Study #21: Philly 5-Unit Apartment Building Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  5-Unit Apartment Building

Purchase Price of the Property:  $135,000

Cost to Rehab Property:  $148,000

Amount of the Loan:  $267,800

Original Appraisal Value of Property:  $140,000

Appraisal Value of Property After Rehab:  $412,000

Monthly Rents Charged After Rehab:  $4,700

Al makes it his business to focus on multi-family buildings, and this 5-unit building was right up his alley.  The configuration of the building was four 1 bed/1 bath apartments, and one studio apartment.  Al quickly installed new electric, plumbing, heating, and flooring throughout.  He put in a new kitchen and bath in each of the five apartments, and was able to rent out the entire building in short order.  Al is hopeful it will be fully rented out for many years to come!

“RFG has always been open to considering any project I’ve brought to the table.  I appreciate that.”

— Al C.

Case Study #22: Philly 5-Plex Apartment Building Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  5-Unit Apartment Building

Purchase Price of the Property:  $35,000

Cost to Rehab Property:  $267,800

Amount of the Loan:  $267,800

Original Appraisal Value of Property:  $35,000

Appraisal Value of Property After Rehab:  $412,000

Monthly Rents Charged After Rehab:  $4,700

This building was a duplicate to the building Al had purchased right next door.  The difference was that the first building had good bones, and it was a pretty straight forward rehab.  This building was just a shell, and required a total frame-out just to get started.  But Al already knew his way around the plans with four 1 bed/1 bath apartments and one studio apartment, and quickly jumped in on this total reconstruction.  He was able to turn this diamond in the rough into a matching gem to the one next door in short order.  It was a ton of work installing new electric, plumbing, heating, and flooring, and the 5 new kitchens and baths were very labor intensive, but the results speak for themselves.  Now Al has ten units between the two matching buildings, and he is proud of the 100% occupancy in both.  What an accomplishment!

“I have always been treated with respect by RFG.  I really feel like they want me to succeed.”

— Al C.

Case Study #23: Darby Triplex Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Darby, PA

Property Description:  Triplex

Purchase Price of the Property:  $54,000

Cost to Rehab Property:  $82,500

Amount of the Loan:  $136,500

Original Appraisal Value of Property:  $60,000

Appraisal Value of Property After Rehab:  $210,000

Monthly Rents Charged After Rehab:  $2,800

Sometimes when a project looks too good to be true, you should grab it and don’t look back.  When Al came upon this triplex, he scooped it up immediately.  The rehab looked very straightforward to his trained eye, and the execution went just as planned.  No huge hiccups.  No surprises buried in the wiring.  That is not to minimize the scope of the project.  The two 2 bed/1 bath and one 1 bed/1 bath apartments all needed to be taken down to the studs.  But Al knew just what to do, and quickly redid the electric, plumbing, heating, and flooring, and installed 3 new kitchens with all new appliances and 3 new bathrooms.  It was a lot of work, but it’s work Al knows how to do well, and all three apartments are now rented out to vetted tenants.  Now that’s how to run an efficient rehab!

Case Study #24: Philly Single Family Home Fix-to-Flip Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  Single Family Home

Purchase Price of the Property:  $100,000

Cost to Rehab Property:  $62,500

Amount of the Loan:  $162,500

Original Appraisal Value of Property:  $110,000

Appraisal Value of Property After Rehab:  $252,000

Sale Price:  $289,000

Net Profit:  $95,000

Al has a long-term buy-and-hold strategy for his real estate portfolio, so he prefers to focus his efforts on rehabbing multi-family dwellings.  But this single family home had good bones, and Al knew that with a little TLC he could turn it around and sell it for a tidy profit in short order.  This 4 bed/3 bath home was a total gut, and Al redid the electric, plumbing, heating, and flooring.  He installed carpet in all the bedrooms, put in a new kitchen with new appliances, and overhauled all three bathrooms.  The outcome was a great success, and Al immediately reinvested his profit into a new project.  This single family home was a great choice for infusing some quick cash into his real estate investment business!

Case Study #25: Philly Triplex Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  Triplex

Purchase Price of the Property:  $65,000

Cost to Rehab Property:  $107,500

Amount of the Loan:  $172,500

Original Appraisal Value of Property:  $70,000

Appraisal Value of Property After Rehab:  $267,000

Monthly Rents Charged After Rehab:  $2,900

Al has tackled many projects where the cost to rehab the building was over $100,000, so this triplex project was nothing out of the ordinary for him.  The configuration of the building was two 2 bed/1 bath apartments and one studio.  His approach to rehabbing is to totally gut the building so that all of the systems he installs are good quality and able to last a long time.  Al installed new electric, plumbing, heating, and flooring.  He put in three new kitchens and bathrooms, including all-new appliances and fixtures.  He currently has 100% occupancy in this building, and his tenants are very happy in their new homes.  Another great addition to your real estate portfolio, Al!

Case Study #26: Philly Griscom Street Triplex Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  Triplex

Purchase Price of the Property:  $115,000

Cost to Rehab Property:  $27,500

Amount of the Loan:  $142,500

Original Appraisal Value of Property:  $120,000

Appraisal Value of Property After Rehab:  $240,000

Monthly Rents Charged After Rehab:  $2,600

Al was very excited to start to work on this rehab project.  The estimated cost to rehab the property was quite minimal, just over $25,000.  But his efforts paid off handsomely, and the appraisal value of the property doubled.  The configuration of this building included two 1 bed/1 bath apartments and one studio.  Al put in three modest kitchens and baths, and brightened the place up with new paint throughout.  The rest was tenant-ready, and Al was able to turn the place around to new renters in a snap.  Now he nets steady rent each month without any further upgrades.  That was a great deal!

Case Study #27: Philly Vine Street Duplex Fix-to-Rent Project

Client:  Al C. – RFG Veteran

Property Location:  Philadelphia, PA

Property Description:  Duplex

Purchase Price of the Property:  $80,000

Cost to Rehab Property:  $49,280

Amount of the Loan:  $129,280

Original Appraisal Value of Property:  $85,000

Appraisal Value of Property After Rehab:  $250,000

Monthly Rents Charged After Rehab:  $2,400

Vine Street in Philly is a well-known address, and now Al has a piece of that street in his real estate portfolio.  He quickly scooped up this duplex, featuring two 2 bed/1 bath apartments.  He took the building down to the studs, installing new electric, plumbing, heating, and flooring, as well as two kitchens and bathrooms.  All of that effort paid off when the appraisal value of the duplex almost tripled.  Now he has two great tenants in place, and they love living on Vine Street.  That’s a property that will always be in demand!

Case Study #28:  Norfolk Duplex Fix-to-Rent Project

Before

After

Client:  Terreon C. & Larry P. – RFG Expert

Property Location:  Norfolk, VA

Property Description:  Duplex

Purchase Price of the Property:  $75,000

Cost to Rehab Property:  $51,600

Amount of the Loan:  $123,500

Original Appraisal Value of Property:  $90,000

Appraisal Value of Property After Rehab:  $190,000

Monthly Rents Charged After Rehab:  $2,000

Terreon and Larry have completed multiple real estate projects together, and their goal is to amass a real estate portfolio featuring multiple rental properties to build generational wealth they can pass on to their children.  By pooling their funds and their talent, they are able to invest in properties and projects much larger than each could afford on their own.  Their Norfolk duplex property rehab went well, and they are able to charge rent of $2k per month.  Terreon and Larry are looking to duplicate their results with a comparable property just a short distance from this successful one.  Congrats guys!

Case Study #29: Norfolk 4-Unit Fix-to-Rent Project

Client:  Terreon C. – RFG Expert

Property Location:  Norfolk, VA

Property Description:  4-Units

Purchase Price of the Property:  $40,000

Cost to Rehab Property:  $154,770

Amount of the Loan:  $194,770

Original Appraisal Value of Property:  $40,000

Appraisal Value of Property After Rehab:  $262,500

Monthly Rents Charged After Rehab:  $4,000

Terreon knew this rehab project was going to be a challenge, because he had to correct structural issues within the building before he could even think about tackling anything cosmetic.  He jumped in, took the building down to the studs, and replaced joists, girders, and beams throughout.  He brought all electrical, plumbing, heating, and central air systems up to par before he closed up the walls and got to work on the interiors.  The configuration of this quadplex was two 3 bed/1 bath units and two 2 bed/1 bath units.  He installed four new kitchens, with new flooring and new appliances.  He also installed four new bathrooms, and added in a washer/dryer hook-up in each unit.  Terreon also re-sided the entire exterior of the building, making it the gem of the block.  All four units were quickly scooped up by new tenants, and Terreon is exceedingly proud of the beautiful property that is now a central part of his real estate investment portfolio.

“RFG is super easy to work with.  I work with Brian, and he is really helpful.  He knows how to move through the application process so quickly and efficiently.”

— Terreon C.

Case Study #30: Norfolk Duplex Fix-to-Rent Project

Client:  Terreon C. – RFG Expert

Property Location:  Norfolk, VA

Property Description:  Duplex

Purchase Price of the Property:  $107,500

Cost to Rehab Property:  $38,000

Amount of the Loan:  $130,000

Original Appraisal Value of Property:  $110,000

Appraisal Value of Property After Rehab:  $200,000

Monthly Rents Charged After Rehab:  $2,500

Terreon had a tight rehab budget to get this duplex updated, and ready for new tenants.  The configuration of the house was a 3 bed/2 bath unit downstairs, and a 2 bed/1 bath unit upstairs.  Terreon cleaned up the electric and plumbing, put in all new flooring and paint throughout, and invested his time and talents in putting in new kitchens and baths on both floors.  He also added air conditioning as the final key upgrade.  He quickly rented out both floors to great tenants who are very happy in their new home.  Great job, Terreon!

“RFG is never flustered when there are hiccups with a property.  They always step up and say, ‘How can we make this work for you?’.  I really appreciate that kind of support.”

— Terreon C.

Case Study #31: Norfolk 2-Units Fix-to-Rent Project

Client:  Terreon C. – RFG Expert

Property Location:  Norfolk, VA

Property Description:  2-Units

Purchase Price of the Property:  $77,000

Cost to Rehab Property:  $72,000

Amount of the Loan:  $139,750

Original Appraisal Value of Property:  $77,000

Appraisal Value of Property After Rehab:  $215,000

Monthly Rents Charged After Rehab:  $2,650

Terreon recognized this beautiful property as a diamond in the rough, and scooped it up right away.  The configuration of the building featured a 3 bed/1 bath unit and a 4 bed/2 bath unit.  The second unit was big enough to house a family and the property was located in a good school district, so Terreon knew he’d have long-term tenants if he put in the sweat equity to upgrade the property.  He cleaned up the electrical, plumbing, and heating systems, and installed vinyl plank flooring.  He put new kitchens into each unit, as well as all new bathrooms.  He turned this property around, and quickly rented out both units.  Way to go, Terreon!

“RFG is so professional.  They are the ones who help me find solutions when there are road blocks with the township.  I feel like they’ve seen it all, and they always have helpful ideas for me.”

— Terreon C.

Case Study #32: Portsmouth Fix-to-Flip Project

Client:  Terreon C. – RFG Expert

Property Location:  Portsmouth, VA

Property Description:  Single Family Home

Purchase Price of the Property:  $92,300

Cost to Rehab Property:  $54,750

Amount of the Loan:  $92,000

Original Appraisal Value of Property:  $48,700

Appraisal Value of Property After Rehab:  $142,000

Sale Price:  $199,000

Net Profit:  $75,000

Terreon usually focuses on building his real estate portfolio with multi-family properties, but this single family home was too good a deal to pass up.  With this 4 bed/2 bath home, Terreon knew to keep his rehab budget modest, and focused on the big picture.  He gutted the interior to upgrade the electric, plumbing, heating, and air conditioning.  He installed a new kitchen and two new bathrooms.  And he vastly improved the curb appeal of the home by re-siding the entire house.  The finished product was a beauty, and Terreon quickly sold it for a tidy profit that he was quick to invest in acquiring another multi-family property.  Nice work, Terreon!

“When I first started flipping houses, I literally Googled ‘hard money lenders,’ and RFG came up in the search.  I called them up, and I could immediately tell they knew what they were doing.  I knew I could leave the financing issues to them, and focus on finding the best real estate deals available.  We’re a good match.”

— Terreon C.

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