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Updated over 5 years ago,
Made settlement on our 2nd of the year! Unit #6
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $55,000
Cash invested: $15,000
Contributors:
Dawn Curry
Made settlement yesterday on our 6th unit! it’s a 3 bed, 2 bath single family home. We bought this one with a construction loan. We put 25% down on the purchase price (55,000) and were able to incorporate almost 20,000 in the loan that we will take out in draws for the renovation. When Reno is complete, it’ll be rolled over into a conventional loan totaling $61,000. Getting in and out of this one quickly because we already have a tenant lined up to move in November 15th :)
What made you interested in investing in this type of deal?
One of our current tenants who we really didn’t want to lose was looking for a 3 bed. We didn’t have any 3 bedrooms available so we started searching for one for him. This one popped up in the neighborhood I grew up in.
How did you find this deal and how did you negotiate it?
MLS....family friend owned it.
How did you finance this deal?
Construction loan. Will roll into conventional. Used Business line of credit to fund down payment. Previous deal was done with cash and when we complete cash out refinance we will take out a little extra to pay back the business line of credit.
How did you add value to the deal?
Solid house in need of some updating. We got a great deal on it considering the situation and relationship with seller. Plans are to just do cosmetic updates inside...paint, carpet...that sorta thing. Also replacing roof and converting heat to gas.
What was the outcome?
Just getting started but should have tenant in there in the next month and property should cashflow $250-$300/month which fits our criteria.
Lessons learned? Challenges?
Almost overlooked this one because it isn’t our typical buy. Taught me to always run the numbers. Doesn’t take long and could end up being a great deal. If it doesn’t end up being a deal that fits our criteria, then that’s fine...always something to learn.
