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Updated 3 months ago,
Our forth investment: the Aberdeen house
Investment Info:
Single-family residence buy & hold investment in Aberdeen.
Purchase price: $40,000
Cash invested: $16,000
Conveniently out of the flood plains, this welcoming 3-bedroom home is features a huge master bedroom, refinished hardwood floors, spacious living and dining rooms, and a stunning kitchen! Located in a beautiful neighborhood desirably close to schools, shopping and all the amenities Aberdeen has to offer!
What made you interested in investing in this type of deal?
The market was increasing and we were able to find an off-market deal from some friends who held the property for over a year had no interest in fixing it up.
How did you find this deal and how did you negotiate it?
We tried helping friends (who bought this investment for $20k) learn how to rehab and get ready for rent or sale, but they felt overwhelmed. We ended up buying it from them for $40k and turned it into a rental.
How did you finance this deal?
Cash, we used a private money investor.
How did you add value to the deal?
The exterior was painted when we bought it, we refinished the floors, added carpet, new paint inside, refinished the kitchen cabinets, replaced a couple windows and did some minor plumbing work inside (along with getting rid of TONS of junk throughout the inside and outside of the home!)
What was the outcome?
We made the home safe and rent-ready and now rent it for $1050 a month.
Lessons learned? Challenges?
Our contractor stopped working while we took a month-long vacation in Mexico due to lack of communication. We were set-back but able to fix the issues once we returned home and get the project complete.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We purchased the home without a real estate agent FSBO off market.