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Updated over 1 year ago, 04/30/2023
Levelland single family
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $30,000
Cash invested: $20,000
Bought in 2021 for $30,000, spent $20,000 on remodel. Rented for $1250 a month.
What made you interested in investing in this type of deal?
Had a friend who owned a rental property in Levelland who told me how low the supply of rental properties was. I also lived in the town over and was able to do a lot of the repair work myself.
How did you find this deal and how did you negotiate it?
I found this deal on Zillow. I saw the property had been listed for a while and decided to make an offer to see how motivated the seller was. House was listed for $40,000, offered $25,000, owner came back at $35,000. Deal done at $30,000
How did you finance this deal?
Cash.
How did you add value to the deal?
Completely remodeled the home. New roof, new HVAC, and all new electrical. House was taken down to studs and completely modernized.
What was the outcome?
Remodel took longer than expected but property has been leased for the last ten months @ $1250 a month.
Lessons learned? Challenges?
Material cost hit harder than I expected. COVID bottlenecks really hurt in regards to Lumber (New 3 sides of fencing), wire for electrical (New panel and all new wiring), new roof, and completely new HVAC. Home didn't have any attic space which created a challenge for HVAC and electrical. Next door neighbor turned out to be the town inspector so I learned to get comfortable with getting permits.