Rehabbed Single Family Home in Westchase, Fl

[Scott Dalziel]

Investment Info:

Single-family residence buy & hold investment in Tampa.

Purchase price: $328,000
Cash invested: $50,000
Sale price: $495,000

Purchased this Bank Owned property in an auction as my primary residence. Added $50,000 to rehab the property included exterior & interior paint, landscaping, all new appliances, new AC System, Tile, Kitchen and Bath remodels. Refinanced after completing renovations and 6 months, appraised at $435k.

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

Was seeking a primary residence and investment in a specific school district in Tampa. Found this Bank Owned Auction Property that fit both our preferences and decent investment opportunity.

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

I identified this property driving the identified neighborhoods we desired to live and research the address online. It was listed on Hubzu as Bank Owned by Bank of America. Bid on the Auction Site for 3 months until the they accepted my offer.

How did you finance this deal?

This was financed using a commercial loan at 80% LTV. Funded the renovations with cash. After renovating, refinanced with a 30 year fixed rate VA Loan.

How did you add value to the deal?

The current value is based off of comparable sales in the same neighborhood within the last 6 months.

Lessons learned? Challenges?

I consider this property a pseudo-investment. If approaching as a pure investment, I would have sought a lower entry price. Being that I was also seeking a longer term residence within a specific school system, I paid more and over upgraded based on my personal preferences.

The ability to identify good contractors was my primary challenge to meet my schedule. I managed all trades. I underestimated the time to complete tasks based on the contractors estimates.

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

Our Realtor was fantastic. I worked with Amanda Alexander. I researched who had the most listing and Open Houses in the target neighborhoods and worked with her to find the right house. She was also very willing to work with an investor mindset where other realtors only wanted to show move-in ready retail homes. I went with a traditional credit union lender due to the long term hold.