Buying a $15k Property to "Spiffify" the Neighborhood!

[Payton Pearson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $15,000
Cash invested: $25,000

This is a basic renovation to make the property rent-ready. Eventually, I plan on super "spiffifying" this property, but for now, I want to remove a blight from the neighborhood and get it fixed up and livable.

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

It was brought to me by my property manager, in need of repair and renovation, but the bones of the property were good. I have started my own form of syndication (not formal, just investing with family), and wanted to remove a blight from the neighborhood while at the same time building momentum for my new business partners.

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

I found this property through my property manager, who is in touch with a real estate owner in the area that does wholesaling and real estate law as well.

How did you finance this deal?

I bought this property cash, but received a sum of money from a family member who is going to invest in it with me. His name will also be placed on the deed.

How did you add value to the deal?

I removed a blight from the neighborhood, and did basic (and eventually Gucci) renovations on the property. I got it rented and livable.

What was the outcome?

It hasn't reached completion yet, but it will rent out for $800/month or more.

Lessons learned? Challenges?

Sometimes you have to be flexible on the tactics and inflexible on the goal. Don't forget why you're in real estate. For me, I'm trying to beautify the world, and what better way to beautify the world and provide people a dignified place to live than removing a blight from a neighborhood?

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My property manager: Steven Leopold.
Real Estate Lawyer: Joe (don't know his last name!). Ask for Joe if you get in contact with Steven.