1st Deal - Stripped to stud renovation in NoMi

[Luke Quinn]

Investment Info:

Single-family residence other investment in Traverse City.

Purchase price: $50,000
Cash invested: $35,000

Purchased a VERY distressed property on contract. Completed a full gut, to the stud, remodel. took approx 1 year to finish as the entire project was self funded AND self built all the while working a 9-5 AND being a full time college student.
Appraised value at time of purchase was $50,000 and value at completion was $188,400.
Holding this one forever.

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

Listening to BP and knowing that I needed to get into some type of deal but I was broke.
I needed to start somewhere and this was the perfect way for me to learn the ropes inside and out with a BRRR-like strategy.

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

Arms length transaction.
Knew that the property had been abandoned for almost a decade and
showed the previous owners that it was costing them money not selling to me.

How did you finance this deal?

Cash / refinance after completed renovations.

How did you add value to the deal?

Full gut remodel from 1970's style to a mid mod/ farmhouse.

What was the outcome?

3.7x increase in value from time of purchase.

Lessons learned? Challenges?

Attempting to save more money by doing everything myself resulted in more unforeseen opportunity cost and the stress took a toll in ways I couldn't imagine. Despite that, there were many more PROs than CONs within this endeavor