House that looked like an 80's McDonalds.

[Matthew Motley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $78,500
Cash invested: $50,000

Home in serious need of repair. Near complete gut. Pulled out entire kitchen, bathroom, and removed 4 windows and 4 exterior doors (not sure why there were 6 total doors leading into the home. Now there is a front door, back door, and door into garage which is much more acceptable. I found that the amount of doors and windows were a strain on the HVAC and needed to come out to help cut the energy use costs.

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

What made me interested is that it was a total mess and I knew that I could add tons of value to it. Also, it came with an additional lot next door which means that I can build another residence or possible multi family unit on that lot for additional rental income.

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

Found on Zillow on a Saturday morning and had a contract on it by noon that day.

How did you finance this deal?

Paid Cash

How did you add value to the deal?

Complete Renovation

What was the outcome?

Still working on this one, but it's going great.

Lessons learned? Challenges?

Check the joists around and under water/tubs/kitchen for rot. Lots of bad beams

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

Yes, I used the listing agent to purchase since it was a Saturday and I really didn't think I'd be able to get it under asking price. The original was $89,900 and we paid $78,500. I believe the rent will be around $1,900 per month.