Bought two houses in one package deal.

[Matthew Weaver]

Investment Info:

Single-family residence buy & hold investment in Culver.

Purchase price: $130,000
Cash invested: $152,000

The house was built in 1910 as a 3 bedroom, 2.5 bathroom. The floor plan and exterior land usage was functionally obsolete. Added a large deck and privacy fencing to create a back yard oasis. Opened the kitchen walls and removed chimney to increase the size of two bedrooms. Reworked from the studs up and converted to a 4 bedroom, 3 full bath home. Redesigned the stairs to improve rise and run. The entire house is significantly more efficient, foam insulation, E windows and LED lighting, and

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

I was able to buy two houses that together needed rehab and redesign. There was a lot of function obsolescence in and around the homes. We were able to see how to improve them both and have the Teams get the work to execute with high quality. Our knowledge of the marketplace and the demands of the buyers allowed us to redesign and improve them.

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

We found the deals using D4D. Then negotiated directly with the owner.

How did you finance this deal?

Cash on my assets and then BRRRR

How did you add value to the deal?

Market knowledge to develop an ARV and a solid estimate of construction costs. It also takes working with the contractor to make changes to improve and mitigate costs.

What was the outcome?

Purchased both houses for 187K spent 165K and they valued at 529K

Lessons learned? Challenges?

As Kiyosaki states hire experts. The challenge was getting the property line adjustment through the city. Once I got the right RE attorney, it all fell into place.