Unlivable dump to cash cow cashflow!

[Shawn White]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $305,000
Cash invested: $60,000

I purchased this property as a fix and hold rental. It is a 1400 sq ft 4/2 california split built in 2004. .2 acre lot with a 2 car garage. This home had lots of pets and was disgusting to say the least. Its in a great little neighborhood and good location to 2 different cities and freeway access. Its currently cashflowing $900 per month and the loan is only at 2.6%. We put about 12 grand into repairs and is now worth about 450k.

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

Rents have been rising rapidly in our area.

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

MLS, It was on the market for 34 days at 325k. We offered 300k and they countered at 315, we countered final and best at 305 and they accepted.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

I put in new LVP floors that I bout at a liquidation place for under $1 per sq ft., new paint, new appliances, fenced the yard, all new fixtures, and painted the cabinets and anything oak went to white with grey floors and paint. Its currently cashflowing $900 per

What was the outcome?

Beautiful like new 4 bedroom 2 bath home with new paint, beautiful lvp floors, all new fixtures, bathroom vanities, all new stainless steel appliances and landscaped fenced yard. Value went from 305k to now 450k in just under 2 years and is getting 2300/ month - 8% property mgmnt fee and 1200 mortgage for a 900 cashflow per month.

Lessons learned? Challenges?

Biggest challenge was getting people to do the work on time because everyone is so busy. I ended up doing alot of the work myself which saved me on expense.

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

I am an agent here so i acted as my own agent. Took the 9k in commissions and invested it back into the property.