Buy and hold deal

[Miguel Bautista]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $115,000
Cash invested: $50,000

Bought this property in foreclosure and bought all cash. The property was renovated and added an additional bathroom and bedroom. Example of how my numbers looked: Purchase Price: $115,000 Renovation cost: $50,000, All in for $165,000. I am currently living on the property and will eventually Refinance the home and pull out %100 of my money and Rent it out. It will cash flow about $800 after refinance. New ARV is $250,000.

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

The house looked in good condition and I knew this area is up in coming and I will be able to take advantage of the new ARV.

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

This was bank owed and I won it on Auction.

How did you finance this deal?

Cash

How did you add value to the deal?

Adding a bedroom and bath.
Along with other interior upgrades: New kitchen, flooring & Paint

What was the outcome?

The process took way to long 6 months.

Lessons learned? Challenges?

Get a good contractor and don’t use family handyman for renovations.

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

Not really, cash