The nightmare gutted reno - still in progress in GR

[Christian Huyge]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $110,000
Cash invested: $35,000

I purchased the home directly behind mine in order to "steal" the backyard. The goal was to do a full renovation and rent out. After digging into the home there were so many issues I gutted the whole thing to the studs. I had to get a variance from the city to do the remodel I want, which is tearing the roof off and raising slightly to make the whole 2nd floor usable because the foundation is too close to the lot line. That took 4 months or so. Now I am trying to find contractors with time.

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

The backyard. Our yards are fairly small and I have a 3 year old son. So I double the size of our yard by purchasing the home.

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

I knew the owner and they wanted to sell and we worked it out.

How did you finance this deal?

I used my Heloc to purchase.

How did you add value to the deal?

I have added a new driveway, but it is gutted now, I am hoping to finish it this year.

What was the outcome?

Yet to come.

Lessons learned? Challenges?

I bit off way more than I can chew, but I am learning a ton. There is still about 95% of the work to do, so we will see what else pops up.

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

Just me