Small SFH deal that had lots of hidden problems

[Patrick Knapp]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $10,000
Cash invested: $24,000

Bought said property that was to say the least a mess, after all will be done it can do $1400 a month section 8, $2000+ airbnb, or if rented to insurance companies short term $3-4k

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

It was at the right price and can pay cash for it, then BRRRR it

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

Found on a Facebook page from a wholesaler, he wanted 14k I talked down to 10k. He made about 3k

How did you finance this deal?

No

How did you add value to the deal?

Yes, complete rehaul

What was the outcome?

Coming to a final end, looks great should come out to 55-65k comp

Lessons learned? Challenges?

Even as a GC, when looking at a deal it's easy to get caught up seeing what you want to see and missing stuff. Serious termite damage behind walls and that cause a large set back

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

Nope