My second Buy and Hold Property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $31,000
Cash invested: $25,000
Single family 2 bed 1 bath. I purchased the property and renovated the interior and painted the wood trim on the exterior. Installed a new HVAC system and a new roof, painted the interior, new flooring, new hot water heater and some new plumbing. I hired out all the work. I cut the grass myself during the reno. Spent 25,000 on the reno. The reno took several months to do, I had other projects at the time and used the same subcontractors for all of them.
What made you interested in investing in this type of deal?
This was a little different from my first one. It is in a little better area but is not the type of house I was looking for. It is wood with older metal siding and doesn't have the bathrooms or debrooms that I was looking for. I was interested because of the area and the return and that structurally it is a solid house.
How did you find this deal and how did you negotiate it?
The agent I was working with found this for me.
How did you finance this deal?
I added the reno cost to the purchase price and got a 80% loan on that figure.
How did you add value to the deal?
I renovated the house
Lessons learned? Challenges?
The lesson learned here was that I can broaden my scope to accomplish my goals.