Number 125 and still growing

[Travis Hill]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $53,000

3/1, 1100 sq ft. We found this deal using mailers from Ballpoint Marketing. We used private money to purchase and fund the rehab. We are in the middle of refinancing the property to pay back the private money.

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

It was our first time using mailers for direct to seller contact.

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

We used mailers from Ballpoint Marketing. It was a postcard. We sent out 1085 mailers and got this one response. The owners had a portfolio and was willing to let this property go. The agent was able to negotiate the price down from $60,000.

How did you finance this deal?

We used private money. First position, 10% annualized return, promissory note drafted by an attorney.

How did you add value to the deal?

We spent $21,000 on the rehab. We expect the ARV to be around $100k. We updated the floors, paint, and a new bathroom and kitchen.

What was the outcome?

It is currently rented for $1250/month. With a 6.5% estimated loan and a 75% cash out refi, it cashflows $264/month.

Lessons learned? Challenges?

Staying patient and waiting for the 6 month seasoning period to go conventional. I am deciding between the higher interest rate and using commercial funding for the LLC or stay in my name and move it to the LLC later.

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

I love working with Done Right Home Solutions for the rehab. Steve and his crew is amazing. I also love working with Mike Kulaga with Century 21 Homestar. Progressive Urban Property Management handles all my PM needs.