Deal #2; MUCH harder to find

[Heather Runge]

Investment Info:

Single-family residence buy & hold investment in Blue Springs.

Purchase price: $132,000

It took us a LONG time to find our second deal, and quite a number of offers that were outbid. Right before Thanksgiving, we got an accepted offer! We did go over-ask, as it was listed right.

This was our first rehab project, which we did from out-of-state with a rehab contractor. He only went $1200 over budget, which I call a win.

Closing: $109,000 Rehab costs: $23,000 = All-in: $132,000

ented for $1395 + $30 pet rent = $1425.00/month

Just cresting the 1% rule, 12.9% ROI.

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

Proximity to a good school (.2 mile), list price was right, and needed work (BRRRR opportunity)

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

We found it ourselves on Zillow and had our realtor Dustin Medlin shoot video and post to YouTube. We offered over ask and got it accepted.

How did you finance this deal?

Private Lending - from family

How did you add value to the deal?

We put $23K into much needed interior cosmetic work. He did flooring, countertops, paint, ripping out a weird semi-wet bar from the basement room to convert to a closet so it can operate as a functioning bedroom now.

What was the outcome?

We had it tenanted in 2 weeks, with a wonderful Sheriff Deputy's family, complete with K9 and a beagle

Lessons learned? Challenges?

We learned a few good things - always make another sleeping area if possible. The 4th bedroom is in the basement so it's non-conforming (you can't really market it as a 4 bedroom legally). However, it made our rental more desirable, and it's being used as we intended, as a 4th bedroom.

We learned to trust our math! This deal was scary because it was our first rehab. But with our conservative numbers - it worked out beautifully.