2nd Property, Learning opportunity

[Kenny Nevarez]

Investment Info:

Single-family residence buy & hold investment in Fairview.

Purchase price: $270,000
Cash invested: $60,000

2nds property is a fixer upper which will require new flooring, paint, teardown of bathrooms upstairs and kitchen due to water damage as well as roof and siding down the line. The real profit on this one will come from us doing the repairs ourselves.

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

Each property I aim to tackle something new to learn as much as I can and get a good foundation. This time around it was a for sale by Owner and a heavy renovation.

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

Was walking down the street and saw the sign on the front lawn. Called the owner and the current renters let me in to inspect the house that same day. Market value of similar comps is between 340k- 360k. So after negotiating all the repairs needed we settled on 270k.

How did you finance this deal?

This time around I needed a bit more funds and we had a kiddo on the way. So we ended up selling my 2 door jeep wrangler and bought a cheap old Honda odyssey. The extra 10k from the jeep plus personal funds let us do another conventional loan at 20% down with my wife meeting me halfway.

How did you add value to the deal?

2600sqft of new vinyl flooring, new paint job. Remodeled master bathroom and main bathroom with new Vanities in all bathrooms. Fixed up all the water damage and did some drywall repair and patching. New roof in already and hoping for a hail storm before we update the siding. We will be installing new cabinetry in the kitchen and increasing the space with a island counter+storage. Basement has space for 4th bedroom down the line. The real catch is we are doing it with family help= sweat equity!

What was the outcome?

Still working on it. Will update with refinance cash out or whatever we end up doing down the line. Might end up renting it as a midterm to travel nurses or such.

Lessons learned? Challenges?

Lots of craftsmanship learned with the help of my dad and uncle who have been in the construction business for years. Thank the lord for Family!

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

No real estate agents this time but did get to experience hiring an attorney to represent me for the sale. The experience wasn't anything special but did get to learn alot from it.