Pecan Grove Flood House

[Pete Schmidt]

Investment Info:

Single-family residence buy & hold investment in Conway.

Purchase price: $75,000
Cash invested: $30,863

Purchased a 2000 sqft 3 bedroom 3 bath home that was flooded in July (owner financed 3 year balloon with $0 down 8% interest). Put $30,863 of my personal funds into the rehab which included all new wood look tile floor throughout, cabinets, granite counter tops, stainless appliances, light fixtures, vanities, and added a door and closet to a bonus room above the garage to make it a 4 bedroom. All in $105,863. Appraised at $194,400. Cashed out refi of $146,250 with monthly escrowed mortgage of $1010. Listed for rent at $1570 a month.

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

Good neighborhood and good price.

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

Someone I knew passed my number onto the seller. I spoke with them and offered a fair price that we both could work with.

How did you finance this deal?

Owner finance to purchase, personal funds to rehab, cash out refi when complete.

How did you add value to the deal?

Converted bonus room into a 4th bedroom and added upgrades to the rest of the place.

What was the outcome?

Increased value.