Total rehab on a drug house. =0

[Salvador Rodriguez]

Investment Info:

Single-family residence buy & hold investment in New Castle.

Purchase price: $80,000
Cash invested: $45,000

My first investment. Purchased a single-family home that was a forecloser, cash and invested my own capital into the rehab.
Completely rebuilt the property, my thought behind it was learning everything I possibly could.

All electrical work got redone from the breaker box to the wiring, new drywall, new windows, kitchen, bathroom, doors, insulated the roof, new plumbing, new floors, new AC/Heating system, new hot water heater, sidewalks, driveway shed was completely rebuilt.

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

It was a small house and I thought it would be a quick project, turned out to be an 11-month process but I wanted to learn so it was well worth it. I ran into a lot of delays and surprises through out it all.

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

I found this deal on Zillow, I used a real estate agent to help negotiate the deal. I wish I would have worked the price down a bit (which I know I could have) but at the time I was just excited to make it happen and close on the property.

How did you finance this deal?

Cash I had saved over the last 7 years.

How did you add value to the deal?

I did a complete rehab on the property. Total investment was 125k the house was appraised at over 150k.

What was the outcome?

I now own a beautiful rental property that I am proud of and managed to rent it within 2 days of listing it.

Lessons learned? Challenges?

Too many to type but I definitely learned that I need to have a timeline, extra cash and I need to be checking in on the contractors a few times a week.

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

Yes, Norma Ocampo from Remax (West Grove, PA)