Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 1 year ago on .

User Stats

485
Posts
277
Votes
David Moore
  • Investor
  • Crystal, MN
277
Votes |
485
Posts

Court Street Dud

David Moore
  • Investor
  • Crystal, MN
Posted

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $40,900
Cash invested: $2,500

Right now, I'm calling this buy a dud...bought this at $40,900.00 in tight market...my lender came back with higher valuation, and financed nearly entire purchase price. This is my most expensive rehab, now, at 28K plus. This is 2 bed/1 bath house...we put on new roof, pipes for boiler, new heat vents throughout, dual zone heat, laminate on main floor, etc. Was hoping for rental, but got nothing but a string of lousy rental hits, nothing solid. Neighborhood outside my normal zone, and feedback was house is small. Decided to put on market to sell...many upgrades, so hoping for good sale price.

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

We'd been looking for a while, and came across this bank owned property. We looked at it and liked it...got it for about 10K under asking.

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

MLS....we offered 1K over a recently reduced price

How did you finance this deal?

Local lender with whom we finance all our deals. Appraisal came in higher than loan, so our lender financed 95%.

How did you add value to the deal?

Pipes were stripped out, carpet had water damage...we removed super heavy old radiators and had our plumber put in modern fin based hot water heat registers. We painted entire interior, some exterior front (mostly vinyl siding). Had roof tearoff and replace. We also found old pipes that went from basement boiler to heat registered were covered with asbestos. Asbestos removal mean pipe removal, meaning pipe replacement. Also redid bathroom with new toilet, vanity, light, paint, and shower

What was the outcome?

We wanted it for a rental, but the rental market was terrible for a 2 bedroom in this location. We decided to sell it...still prepping for sale

Lessons learned? Challenges?

If I see radiators in a house again, I'm either severly cutting my offer, or walking away. Airflow in radiator heated homes is negligible.
There was a lot of unseen damage. Definitely wish I had not bought this one.

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

Matt Johnson Leland Realty is our agent...he is outstanding on every level. Jim and Dudes plumbing and heating prioritized my project due to long term relationship. Their work is fantastic. Thompson electric outstanding work. My handyman Tim is top notch. I have a great team.