South Houston Rental Deal: Seabrook Property

[Kevan Shelton]

Investment Info:

Single-family residence buy & hold investment in Houston.

Purchase price: $35,000
Cash invested: $6,000

This property is a single family home in our build area. The property was extremely run down there was even a guy living in the yard in a tent. We are going to completely renovate the home including changing the pitch of the roof and adding a bathroom. When we are done the property will be a 1300sqft 3/2 valued around 170k. The lenders ARV appraisal came back at 161k

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

For us its all about the numbers in our market area. We are building 20 new homes in the same area so any property that we can purchase, renovate and cash out into a rental only makes our neighborhood better.

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

This deal was on the MLS and actually when I offered full list price the seller personally called me and asked me to visit the property to make sure I was comfortable. After touring the outside I would have paid full asking but I asked for 10k off and the seller was more than happy to agree.

How did you finance this deal?

We used a hard money lender at 70% of the ARV

How did you add value to the deal?

Complete renovation and addition of another bathroom

What was the outcome?

TBD

Lessons learned? Challenges?

The sellers title company sucked so I would use my own title in the future.

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

Tidal Loans