Rehab House with Great ROI

[Jay Mackey]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $60,000
Cash invested: $5,000

My first property purchase in the USA. I bought this with a rehab/construction loan. This was part of a package deal, where I bought the other property as a primary residence with nothing down. Rent in the area has increased 60% since purchase!

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

I was desperate to get started and didn't mind putting in a ton of work myself.

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

I found it on Zillow, and noticed that the properties were a mess and had to be purchased together. A great opportunity due to the low demand of a potentially difficult deal.

How did you finance this deal?

Construction loan! It was a hassle, but made the deal possible.

What was the outcome?

Great cashflow and ROI!

Lessons learned? Challenges?

I learned that I don't enjoy the process of construction loans (at least the one I used). Tons of paperwork!
This was my first real project house, and looking back, I learned the majority of lessons on this one!