My first large rehab turned to rental

[Dakota Beyer]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $9,000
Cash invested: $55,000

Complete gut and rebuild (everything besides studs and rafters

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

$9000 purchase price in B class neighborhood with ARV of $125,000

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

I was cold calling investors as an agent looking for listing and contacted and investor that said he would sell this house cheap. I went over and looked at it called him in the morning and he threw out $15,000 I told him I was going to start at $6,000 and end at $8,000 ended up settling at $9,000

How did you finance this deal?

Cash purchase with a construction loan

How did you add value to the deal?

Complete remodel. Sheathing, roof, windows, electrical, plumbing, insulation, etc...

What was the outcome?

We received a construction loan for $80,000 used $55,000 to remodel and purchased another deal similar. Termed out the loan at $80,000 on an ARV of $130-$135,000

Lessons learned? Challenges?

You make your money when you purchase.