I'm 25, the wife is in med school and I work remotely as a Web developer. This is my first deal, I used very little of my own money, but I did open a couple credit cards for the renovation. I plan to pay off the cards with the income and the rest once I cash-out refi. I learned a lot and loved the project. I cant wait to do more deals!

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

BiggerPockets of course! I've been listing to the podcast, reading the books they published, Rich dad Poor dad (of course), etc

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

I found this home on the Local MLS listed for 100k. The home was posted only 3 hours prior. I immediately called my agent and requested a showing ASAP. We were able to get in the home just 2 hours later (good agent). The owners were trying to move to a new home and I dont think they saw the value in their home. Comps ARV were 180k+. I immediately placed an offer at 105k, 5000 above asking with a 6 hour acceptance contingency to be answered by 10pm. They accepted!

How did you finance this deal?

! I tried to finance the home with a traditional mortgage and 5k down, however, the bank would not loan on the home as they thought the home was not move-in ready. Owners immediately tried backing out of the deal as soon as they heard(they now had back up offers likely higher than mine) and would not give me much time to make things work. I called HML but ended up not needing them as my family offered me the loan. They all saw the value. We changed the offer to a cash deal.

How did you add value to the deal?

We fixed all the issues with the home, water damage from the chimney, ripped out old carpet, installed laminate over almost everything. There was old hardwood in there but I opted out trying to refinish them as I knew they were going to get destroyed again with tenants so I thought laminate would be easier to manage. Fixed the plaster walls, repainted, granite in kitchen, painted cabinets, new hardware, refinished old doors and hardware.

What was the outcome?

I want to cash out refinance the home, however, In order to receive 80% LTV at ARV instead of the purchase price the home needs to be owner-occupied for at least 6 months. So I stay there most nights (I like the house a lot) . I now have the home listed as an Airbnb and simply crash with my parents whenever there is a booking. I met a new local company with their own designer that we're able to furnish and design the entire home extremely cost-effectively.

Lessons learned? Challenges?

Contracts! I was working with contractors that all came highly recommended by family. One has been doing small jobs for my family for 7 years the other was a good friend of my brother in law. It doesn't matter. Especially on big jobs with contractors that usually work on small jobs... They will not show up, they will do some things poorly, wasted materials the usual. I found some example contracts on Bigger pockets I plan on using for my next deal.

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

I worked with two agents actually, My mother and my cousin. If you're in Cincinnati and want their contact information message me. They are both professionals and love what they do.