Wholesale Investment in a Single-Family Residence

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Investment Info:

Single-family residence wholesale investment.

Purchase price: $625,000
Sale price: $700,000

I’m excited to share my recent experience with a wholesale investment in a single-family residence located at 875 N Michigan Avenue, Chicago, IL 60611.

After purchasing the property for $625,000, I focused on strategic renovations that enhanced its appeal and functionality. This included updating the kitchen and bathrooms, improving the landscaping, and finishing the basement to maximize rental potential.

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

I was drawn to this type of deal because it offered the potential for significant appreciation in a desirable neighborhood. The property had good bones and a solid structure, making it a great candidate for renovations that could increase its value.

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

I discovered this deal through a real estate investment group I’m a part of. After a thorough market analysis, I reached out to the seller directly and negotiated a fair price based on comparable sales and the property's current condition, emphasizing my ability to close quickly.

How did you finance this deal?

I financed the deal through a combination of personal savings and a conventional mortgage. This allowed me to leverage my investment while keeping my monthly payments manageable.

How did you add value to the deal?

I added value by renovating the kitchen and bathrooms, updating the landscaping, and finishing the basement. These improvements not only enhanced the property's appeal but also attracted higher-quality tenants.

What was the outcome?

The outcome was very positive. After completing the renovations, I was able to rent the property for a significantly higher rate, which improved my cash flow and increased the overall property value.

Lessons learned? Challenges?

One of the key lessons I learned was the importance of thorough due diligence. I faced challenges with unexpected repairs during renovations, but having a contingency budget helped mitigate these issues.

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

Yes, I worked with an excellent real estate agent who specializes in investment properties. Their expertise in the local market was invaluable, and I would highly recommend them to anyone looking to invest.