Fix-and-Hold home in NW OKC

[Will Fraser]

Investment Info:

Single-family residence buy & hold investment in Oklahoma City.

Purchase price: $60,000
Cash invested: $8,750

I purchased this home when an investor friend of mine backed out, and it was a great call.

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

It was a 2 bed 1 bath home that I saw some potential in. Ultimately it was one that I got to add some value to in a BRRR style approach.

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

A lender friend of mine referred the people to me in order to serve them as a real estate agent. After the buyer we had for it backed out I asked if I could purchase it and they were "in". We had already negotiated a price and that amount worked for me.

How did you finance this deal?

I used an ARV loan with a local bank who lends 85% of purchase price + rehab costs or 85% of appraisal value.

How did you add value to the deal?

I converted the dank, nasty garage to a bathroom to make it a 2/2. It bumped the appraised value up by $10,000.

What was the outcome?

Now I have a home that rents out easily, cost $8,500 to purchase, and covers debt service, vacancy, taxes, insurance, and all the other figures I factor in.

Lessons learned? Challenges?

Make people clean their own junk out or knock more off the price -- If I have to remove your junk (or pay someone else to do it), you MUST pay for that. Also, hire a pro. . . I CAN do it, but that absolutely doesn't mean I SHOULD do it.

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

Nope, not on this one. Other than my superman Agent (me), the other vendors in this deal are ones I don't use anymore.