Purchased from my girlfriend's coworker. House has some differed maintenance and needs updating. Goal is to turn this around in 30 days and rent for 1600.

Used a construction loan to finance. As-as appraisal came in at $155k so I only had to bring 15% down to close. Subject-to appraisal came in at $203k. Total mortgage after draws will be for $148k. Cost for improvements is around $25k at the moment. This money is coming from a HELOC on another property. So all in for $0 cash :-)

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

My 4 other properties are all SFH. I made a LOT of mistakes and learned a ton from those. I'm really excited to apply all my experience and ATTACK this project.

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

GF's co-worker was moving FAST and didn't want to worry about listing with an agent. I asked if she would be ok with me taking a look and presenting an offer. I asked what she'd like to change/update to the house and used that as line items in my reno budget.

After showing her how I came up with my offer she accepted!

How did you finance this deal?

Commercial construction loan.
9 months interest only
5 year fixed @4% amortized over 25 years
Total mortgage will be for $148k

How did you add value to the deal?

Fixing deffered maintenance. She lived there with 3 dogs so there were some great smells from "the dog room"

This hose was effectively a 1/2 when I bought it. I'm adding 1 bedroom in an annex and 2 bedrooms in the upstairs (is a 1.4 story house). This will make it a 4/2 in a great neighborhood that currently has ZERO houses for rent.

What was the outcome?

Still in progress but things are looking great! Had a new roof on the day after closing. All materials are on site. All quotes are in and work as started with the demo and framing the new bedrooms.

Lessons learned? Challenges?

Unknown 1 - Upstairs had no insulation and is 20+ degress hotter than rest of the house. Adding insulation and a minisplit ~$3000
Unknown 2 - landscaping is a mess (totally missed it) - $500
Unknown 3 - finding an electrician - my GC was able to find one. I underestimated all the electric work that needs to be done