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Updated about 3 hours ago on .

User Stats

7
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0
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Enrique Hernandez
0
Votes |
7
Posts

SingleFam Purchase by Falling Tree

Posted

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $160,000
Cash invested: $45,000

Ended up buying the property after getting to know the owners who were cleaning up when I went over to ask them permission to cut down the leaning branches toward their roof.

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

It was a deal that was offered to me directly by the owners using owner financing and i took it!

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

The property next door to this one I own 50/50 and went out to cut down a tree that our tenants said would fall on the neighbors home. I had seen the property listing already on redfin and wanted to buy it but had no cash! Again, I used my parents but this time only as lenders of part of the money for the down payment. I was able to secure $27k from them and $8k from our savings and the deal went through!

How did you finance this deal?

I was able to secure $27k from my parents as a direct non interest family loan and $8k from our savings.

How did you add value to the deal?

Renovated the inside of the house. Updated the kitchen, bathroom, and pulled permits to expand an additional bathroom/walk in closet. This extension is still under way. I rented out the 2 bedrooms 1 bath for $1,300/mn

What was the outcome?

I rented out 2 bedrooms 1 bath for $1,300/mn, as it is a 3 bedroom but blocked it off to be able to do the bathroom addition.

Lessons learned? Challenges?

Biggest lesson here for everyone is NOT to include utilities EVER!!!!! in the rent. The plan was to house hack the house by setting up the third bedroom as a studio apartment with its own bathroom and walk-in closet. Being that they have sepperate ways to enter the house it was reasonable. We rented the 2/1 side for $1300/mn and thought we could finish the addition of the bath and closet but got so busy with my construction business I still have not completed the work.

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

not for this one.