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Updated over 2 years ago,
Off Market Purchase of Primary
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $305,000
Cash invested: $99,800
Purchased off market and performed a complete top to bottom renovation. Looking to live in for 5 years then will convert into a rental property.
What made you interested in investing in this type of deal?
Location and price.
How did you find this deal and how did you negotiate it?
Family friends were managing up keep of home, and follow up. They needed help selling the home which contained a reverse mortgage on it under an elderly relatives name.
How did you finance this deal?
Conventional mortgage 5% down with $5000.00 seller assist.
How did you add value to the deal?
Complete Renovation. New roof, windows, siding and installed paver outdoor kitchen and patio. Interior gutted down to studs, removed walls for open floor plan, replaced 90% of homes original plumbing and electric, added central air and heat, removed old oil burning system. Remodeled the kitchen, family room and finished the basement.
What was the outcome?
Currently living in a basically brand new home with a very low monthly mortgage payment.
Lessons learned? Challenges?
Use a construction loan instead of sourcing personal capital.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No agents involved, P2P Sale occurred.