Getting started Again

[Brandon Taylor]

Investment Info:

Single-family residence buy & hold investment in Milford.

Purchase price: $120,000
Cash invested: $40,000

2/1 SFH investment property in an area ripe for revitalization. Purchased for $120k with an appraisal (as is) of $186k. It's an older home (1915) built with a funky layout (essentially kitchen and bathroom were add ons). Plans were to finish the attic adding an additional bathroom and bedroom and moving existing kitchen to create first floor master suite. This would've turned it into a true 3/2. After careful consideration I found I was being too emotional with my first investment property (after a 15 year pause). I also found it extremely difficult to find reliable contractors.

5/17/23

Working with reliable contractor after 3 failed attempts. Plan is to have it on the market by June 15th. Flooring, electrical upgrades, new kitchen and bathroom, paint and some exterior facia work. Some new windows.

Will update as things progress

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

Low risk, potentially reasonable reward. Interest rates were low and it’s a low entry price.

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

Saw it listed on Redfin. Seller wanted $152k but for me to make the numbers work I countered at $112. We settled at $120k with a 30 day close.

How did you finance this deal?

Local lender. 30 year mortgage. 25% down and 5% interest.

How did you add value to the deal?

New foundation (unexpected), new floors, new kitchen, new bathroom, new porch, new electrical, plumbing. Paint. Finished attic and landscaping.

What was the outcome?

Will be listing it shortly. Aiming for $1600

Lessons learned? Challenges?

Expect the unexpected with really old homes. I knew I needed new floors but had no idea the house was literally built over dirt with no foundation in some areas. Termites and water damage had taken a toll over the years.

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

Yes. We’ve developed a good local network that we can trust.