403 Mcbaine Columbia MO single family BUY-HOLD

[Milton Chamberlain]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $80,000
Cash invested: $52,500

-Cleaned up and rewired electrical
-pulled up floor boards to access crawlspace to repair and replace damaged support beams, floor joists as well as install a sump pump and level out dips in ground
-Added 3/4 bath to master suite
-ALL new interior (drywall, paint, all fixtures, flooring, appliances, kitchen, bathroom, cabinets, etc)
-new front porch
-removed eyesore fencing
-new interior and exterior doors
-all new windows
-new water heater and heater

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

low hanging fruit, was able to purchase from a family member for a good price. They were wanting to use proceeds in a 1031 exchange.

How did you finance this deal?

traditional lender 15% down

How did you add value to the deal?

added a bath. Complete cosmetic upgrade

What was the outcome?

Rent went from $700/month to $1300/month

Lessons learned? Challenges?

Always get an inspection, even when purchasing from family. Set stricter parameters and deadlines with penalties with contractor.