1950's 3/1 Cashflow ranch with 1740 sqft detached garage

[Daniel D. Foley]

Investment Info:

Single-family residence buy & hold investment in East Hampstead.

Purchase price: $330,000
Cash invested: $75,000

https://youtu.be/6qAZMnPbeP0

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

I am early in my real estate journey but have gravitated to single family, 3/1, value add ranches that are located in B class areas. I come from a blue collar background and enjoy building equity and providing hard working middle class families with a nice place to live. I am able to cashflow these kinds of properties by finding the deals with detached garages. They are extremely valuable to contractors that live in these B class areas that I invest in.

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

It was on the MLS for an extended period of time and the agent did a terrible job with the photos, property description, and showing the true potential behind this ugly 1950s home that just needed some lipstick. I painted a big picture of what it was going to take to modernize the property and fix the things that came up on the inspection report. I provided better comps that sold for less.

How did you finance this deal?

I leveraged my good credit score and got a traditional loan at a big bank. 30 year fixed.

How did you add value to the deal?

I modernized the electrical system and repainted the entire house. We also refinished the kitchen cabinets and floors.

What was the outcome?

Within one night of posting my add on craigslist and facebook I had 15 people scheduled to look at the house the following
Sunday.

Lessons learned? Challenges?

Don't let your tenants flush baby wipes with a septic system! Double check your contracts and make sure that the pet fee is recurring month to month and not just a one time fee.