First Investment Property!

[Andrew Sheehan]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $100,000

3/1 + Enclosed Carport 1008 sq/ft.
- Added 2nd Bath, floors, and interior paint.
To do's:
- Partial Kitchen: counters, cabinet paint, stove, and sink.
- Deck
- Exterior Paint
- Roof

Considering converting enclosed carport to studio.

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

Bigger Pockets

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

Found on the MLS, and knew it had a ton of potential to add value.
I ran the numbers on the property and knew that the home was undervalued. I sent in a cover letter with my offer $26k under asking, the seller countered, I countered again and got accepted. I got the home $23k under asking, and $32k under appreciation. Turned out the seller had several liens on the home and was trying to get out from under it.

How did you finance this deal?

FHA 25% down since my debt to income was too high.

How did you add value to the deal?

Added a second full bathroom, upgraded light fixtures, paint, kitchen counters,
appliances, roof.

What was the outcome?

Still rehabbing.

Lessons learned? Challenges?

Handymen/contractors are a major headache. Always permit projects.

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

Mark Dobson/Agent
Guild Mortgage