Type: Single-family house in older neighborhood
Location: Revitalizing neighborhood in North Valdosta area
Initial Condition: Structurally sound but extremely dated interior with original finishes, worn flooring, outdated kitchen and bathrooms, overgrown landscaping. Significant deferred maintenance.

What made you interested in investing in this type of deal?

Low initial purchase price of $135,000 offered a significant entry point. This lower investment reduced the overall financial exposure compared to higher-priced properties, making it an attractive option for a project with a tighter budget. It also allowed for more flexibility in the renovation budget, even with the ultimate higher-than-anticipated costs.

How did you find this deal and how did you negotiate it?

This property was offered through a property manager. The property was a long term rental that was dated and not taken care of by the tenant or previous owner. I negotiated the price directly with the owner and didn't have to pay realtor fees during the purchase.

How did you finance this deal?

I financed this deal with 75% bank loan from a small community bank. 3yr balloon payment. 8% interest. The 25% was funded using a personal private lender. I offered them 10% interest only per year on their money. The funded the 25% down payment and the renovations.

How did you add value to the deal?

Modernizing the kitchen and bathrooms with new fixtures and finishes created desirable spaces. New LVP flooring and fresh paint improved the home's overall feel, while replacing drafty windows enhanced energy efficiency. Curb appeal was boosted through landscaping and exterior updates. Crucially, addressing plumbing and electrical issues ensured the home's safety and functionality. These improvements transformed a dated property into a move-in-ready home, justifying the increased market value.

What was the outcome?

The renovations took longer than expected due to foundation and crawlspace repairs. We ended up having to waterproof the foundation. The renovations took 3.5 months longer than expected. We went over budget by 35k. Our entire profit was lost due to high rehab cost and extended carrying cost. Private personal investor was paid their 10% interest and return of their capital.

Lessons learned? Challenges?

I need to spend more time evaluating the foundation and moisture problems

I need to increase rehab time and cost when dealing with repairs that require specialty contractors. For example, I have 6 vendors that can lay LVP floor. I only have 2 vendors that deal with wet crawl spaces.