Always get an inspection!

[Richard Mercado]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $53,370

SFH in Fayetteville NC.

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

The appeal of this property was that it was in a good school district and had strong appreciation potential.

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

Purchased from a wholesaler who originally wanted $54,000 but we negotiated it down to $50K.

How did you finance this deal?

Initially purchased this property with all cash.

How did you add value to the deal?

We spent $35K on a full rehab and added a 2nd bathroom making it a 3/2.

What was the outcome?

We refinanced 10 months later leaving about $4k in the deal. Almost a perfect BRRRR.

Lessons learned? Challenges?

A year and a half after the purchase we started having severe floor issues and discovered the underpinnings were in very bad condition. We ended up spending another $15K to fix the problem. lesson learned was to always have an insopection before purchasing. I could have potentially asked the seller for a better to deal to offset the cost.