First 2/1 in Milwaukee

[Travis Hill]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $43,000
Cash invested: $21,000

It is a cute 2/1 on the north side of Milwaukee. Basement and garage.

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

This property was new to our buy box and I wanted to test the value of a 2/1 in the area.

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

This was an off market property that a realtor who I work with there presented to me.

How did you finance this deal?

I used 100 percent private money.

How did you add value to the deal?

We did $51,000 rehab throughout the whole property.

What was the outcome?

We ran over on the budget and the appraisal came in really low. It is currently rented and cash flowing.

Lessons learned? Challenges?

We had our first Reevaluation of Value (ROV) on this property. The first appraisal came in at $88,000. We had comps at $125,000. The ROV came back at $98,000. We bought down the rate to 6 percent. That cost us $5200. We ended up coming out of pocket with closing costs, interest, and rehab a total of $21,000. So instead of doing a great BRRRR, we ended up financing our own turnkey.

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

CMG Mortgage, Anita and Mark David were awesome, I highly recommend them.
Robin Gevvart, solid agent, great friend, knows her market well.