Home purchased and remodel for rental

[Kit Langstroth]

Investment Info:

Single-family residence buy & hold investment in Modesto.

Purchase price: $170,000
Cash invested: $75,000

Bought wholesale, fixed home up (total invested cash $245,000) Value estimated to be around $360,000.

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

An opportunity that fell in my lap.

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

I was a trustee who needed to sell this home. It was in very poor shape so I posed an offer to all beneficiaries who agreed to my offer. I then gutted it and modernized entire home.

How did you finance this deal?

I paid cash.

How did you add value to the deal?

Gutted and invested back in the home which it now looks great.

What was the outcome?

The outcome was really great although there were at times headaches. A good friend who is a real estate agent referred me to his brother in law who is a contractor and gave a fairly low bid. I eventually learned he was unlicensed which didn't make me happy. He took longer then expected and may not have pulled permits but he used professional licensed subcontractors who did follow code. Over-all, not sure I would recommend going down this road but at the end of the day, the work was very good.

Lessons learned? Challenges?

Hire a licensed professional

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

Joe Keevil real estate agent in Modesto area, California