Our first LLC SF house

[Jack Butler]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $127,500
Cash invested: $22,000

A colonial style house located in a subdivision. It is a 2 story with 3 BR, 2.5 Bath, and a 2 car garage. Sq ft is approximately 1600+. This house needed some TLC.

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

This property was broughtto me by the real estate agent once a house we were interested went under contract before we could offer. We negotiated the price and got it under contract. The Home Inspections/ contingencies revealed a number of problems so we renegotiated the selling price to reflect the new added cost. The house was bought and closed on before we ever walked in the door. It helped to have family local that could recon the property and take detailed pictures.

How did you finance this deal?

All Cash currently. Plan to BRRRR

How did you add value to the deal?

We painted the interior, added backsplash in kitchen, laminate floor in BR's, changed some light fixtures, and faucets.

Contractor solved the surface water that plagued the foundation- added french drains, graded exterior, replaced the rotted gutter system, and new vapor barrier to crawl space. The house hadn't been painted in 10+ years so rotted masonite siding was replaced where needed, exterior paint, replaced broken windows, fixed active plumbing leaks, new HW heater, and added a deck.

Lessons learned? Challenges?

Learned that opening an LLC on short notice is possible but stressful.