Complete Rehab and Hold/Rent

[Marshall Smith]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $42,000
Cash invested: $50,000

2bed/1bath 1,100 sq/ft SFH completely renovated. Stripped to the studs, new electrical, new plumbing, restored original wood floors, and brought a 1946 gem back to its original form!

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

Simply put. Value Add deal. Immediate equity.

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

Found the owner and asked if they would like to sell.

How did you finance this deal?

Personal finances

How did you add value to the deal?

Complete gut job. Real value-add renovations. Rent went from $800 to $1250

What was the outcome?

$30k in equity and 100% cash flow besides taxes and insurance.

Lessons learned? Challenges?

Demo is easy, and sheet rock dust is the worst! Honestly, it's not that hard. Just hire an electrician, hire a plumber, and you can do all the rest. Like anything else, it takes a lot more time and money than you think. Don't let these get rich quick fools fool you.

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

No