Ugly duckling producing golden eggs

[Alan Hon]

Investment Info:

Single-family residence buy & hold investment in Trona.

Purchase price: $75,000
Cash invested: $50,000

Our latest project is a 2/1 that we re-designed and rebuilt in order to capitalize on the STR market in Gainesville, Florida. The house was the ugliest house on the block but is located in the heart of the downtown area close to the University, a major hospital and historic downtown Gainesville. It took a bit longer and cost a bit more than we expected but in the end I think you'll agree it turned out great. The neighbors are happy and we have received a 5 star review from every guest.

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

Gainesville Florida presents an AWESOME opportunity for those looking for STR income. Transitional neighborhoods and high demand results in an amazing opportunity to create cash flow, reap the rewards of ownership and have someone else contributing to your retirement.

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

I work with a local realtor who found me a great off market opportunity.

How did you finance this deal?

The property only being valued at $75,000 with a remodel budget of just $50,000 kept us from being able to source through most hard money lenders so we had to come out of pocket on this one.

How did you add value to the deal?

the house was in horrible shape and had no flow to it at all. Over the years the kitchen was moved to the back of the house with no air flow so you could smell the grease from the moment you walked in the door. I stood in the space, came up with a design strategy and got to work gutting it to the studs. Removing a few walls we moved the kitchen to the middle of the house, created a brand new bathroom space, opened up the walls between a small non-functional porch and opened up the space.

What was the outcome?

The house is now a space where every guest has given us a 5 star review and more than paying for itself.

Lessons learned? Challenges?

We bought the house without any inspections and unfortunately had significant termite damage to the front porch. Thankfully I have been rebuilding houses for more than 17 years. I was able to roll up my sleeves and rebuild the front porch to be better than new.

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

Thankfully my team is experienced in every aspect of real estate redevelopment. From design to delivery we can do it all.

[Alan Hon]

Quote from @Walter Key:

Nice one Alan! 

Are you familiar with our Monthly Bigger Pockets Gainesville Meetup? 

 I am.  I spend my summers places other than Gainesville as the swamp just isn't very desirable that time of year.  Now that I'm back I hope to be a frequent participant and hopefully contributor.