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Updated 9 months ago,
Industrial Trailer converted into a SFR??
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $220,000
Cash invested: $32,000
Single family sitting on 1/3 acre with a large 4 bay garage with Garage apartment to be built out. At first glance this property didn't need much but the more we looked, the more we found. House is a 3/3, 2264 sq ft. But the "Master bath" had never been built out. Plus the house had an industrial tile drop ceiling - weird. We believe this was a construction work trailer someone converted into a house.
What made you interested in investing in this type of deal?
The ADU in the back is what drew us initially to the property. Any time you can get more cash flowing doors on one lot, they happier you'll be :-) It also seemed like the primary unity was only in need of a quick make ready.
How did you find this deal and how did you negotiate it?
I found this deal in an off market deals facebook group.
How did you finance this deal?
Hard Money loan through Blink lending.
How did you add value to the deal?
We will be Vaulting ceilings and getting rid of the industrial drop down tiles. Open up wall from the kitchen into the game room. Remodel both bathrooms and kitchen. Add a separate HVAC drop unit into game room (currently no ac). Fresh new interior paint and new flooring in the bedrooms.
What was the outcome?
We start the rehab process this week. Our budget is $47k
Lessons learned? Challenges?
When purchasing the house, the sq ft of the ADU was included in the overall sq ft of the house. This threw off our numbers quite a bit and it causes us to get punched in the gut when we got the appraisal back. We have now learned to verify the sq ft of every property we plan to buy. We ended up purchasing the property for a great deal, so it saved us this time. But it could have easily bit us in the booty something fierce.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Kai Lai with New Western went above and beyond for us once again.
Ravi with Blink lending has been greatly helpful through the lending process.