11th Property Closed

[Josh Nelson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $302,800
Cash invested: $40,000

Purchased as new primary residence. 5% down conventional loan. Seller paid closing costs and I received $7k back as commission. Spending around $30k to remodel and add value before moving in.

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

Great location with a value-add opportunity. Renovations of $30k for new flooring throughout and completely new kitchen. Home has a pool, so my family strongly influenced the purchase.

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

MLS listing. I offered $7k over asking and seller agreed to pay closing costs. I was the first offer and they accepted. I did not waive my commission and received $7k back with only $9k net out of pocket at closing.

How did you finance this deal?

Conventional loan, 5% down.

How did you add value to the deal?

Rehab in process. Tearing out old carpet and replacing with solid hardwood on main floor. LVP in the basement. Complete kitchen demo and remodel.

What was the outcome?

Rehab in process. Plan to live there for at least a year. Then will negotiate with family to convert to STR or MTR :)

Lessons learned? Challenges?

I'm learning to work with my handy man on time lines and project completion. I need to be clearer on expectations on that front. This deal took longer than expected to close due to seller side POA issues with the estate. They agreed to pay to extend my rate lock though so it was all good.

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

I recommend my lender, Steve Darnell at Flagstar bank and the listing agent, Christina Rademacher, of Coldwell Banker of Okemos.