First thought House Hack now possibly sell

[Keith Thomas]

Investment Info:

Other other investment.

Purchase price: $375,000
Cash invested: $65,000

This was a 3 bed 3 bath 3184 Square feet. In Auburn, WA with a huge daylight basement. So it had 4 legal bedrooms and 3 bathrooms, in its horrible condition so I think it was advertised wrong which was to my benefit. My original plan was rental property in this area would be ideal due to a college being close by.

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

Listening to podcast and seeing this property was listed wrong so I saw hidden opportunity. So I figured a great House Hack in Washington. With a legally permitted ADU everything should work out just fine. Never thought that I would sell this place until the realtor mentioned 700k so I am willing to test the market when I'm 100% done. I have another 20k to put in. So I am always looking for hidden gems due to the prices are a little high in this area and me being new and trying to build capital.

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

This was on the MLS, it was listed for about 515k in horrible condition. So I just waited and the price started to come down. I made an offer at 425k they refused. So it got to 390k someone else bought it. My realtor and I were disappointed and I said back to looking. Then 2 weeks later came back on the market and I offered 370k and it was a little bidding war and my final offer was 375k and I got it.

How did you finance this deal?

I used a VA Rehab loan. 0 down

How did you add value to the deal?

I added new flooring , Paint new electrical panel , changed all plumbing fixtures, and a new bathroom downstairs and put in a brand new kitchen. Added a Tankless water heater. I still have quiet a bit left to get down Landscaping, new decks and paint the exterior.

What was the outcome?

Well So far it looks great. A lot of compliments I will try and post pics if I get this all figured out.

Lessons learned? Challenges?

Relying on contractors to show up. Realizing that if you are not familiar with rehab's they will charge you a lot of money. A good Handyman is Priceless. Completing the home before you began and sticking with your plan.

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

I did work with someone but I am a little hesitant to just put his name on here without permission.