Finding success in small town investing

[Brandon Taylor]

Investment Info:

Single-family residence buy & hold investment in Milford.

Purchase price: $115,000
Cash invested: $60,000
Sale price: $235,000

Small town reno, great return. I purchased this older home last year ($120k), which appraised at $186k before closing. It took about 6 months to complete the reno. I was able to rent the property out at $1750 per month with my note being all-in at $924 per month. After Reno, the property appraised at $239k.

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

I'm looking to buy back my time.

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

MLS - it was overpriced for the condition it was in. I let it sit for 4 months before I decided to make what I considered a reasonable offer.

How did you finance this deal?

Hard money loan

How did you add value to the deal?

New windows and doors, new kitchen, updated bathroom, new HVAC, new flooring and paint and finished the attic with flooring and heating/cooling.

What was the outcome?

Property was appraised at $239k. Property is rented for $1750 per month. Monthly mortgage with insurance and taxes is $924. I self manage this property.

Lessons learned? Challenges?

Early on I replied on various contractors (unsuccessfully) due to my (then) full time, very time consuming job. Since then, I've learned more into my build, design and project management skills, taken everything in house, gotten my GC license and taken a more hands on approach. I realized that this isn't "passive" at all and success can be the difference in knowing what's going on and being aloof.

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

Absolutely not ;-(