Learning how to rehab

[Christina Fleck]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $236,000
Cash invested: $110,000

Our very first experience with rehab was on our primary residence. We used a 203k loan and learned a lot! We took the ugliest house in the neighborhood and made it into the best one.

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

We wanted to jump right in to real estate investing.

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

This was a HUD property.

How did you finance this deal?

203k construction loan.

How did you add value to the deal?

We invested about 110k in renovations into the property, to include new layout, new floors, kitchen, bath, paint...etc. It was a complete house remodel.

What was the outcome?

The property value increased from 236k to 400k.

Lessons learned? Challenges?

About a 3 weeks before completion, the pipes in the upstairs master bedroom burst overnight, drenching the new sheet rock and hardwood floors downstairs. Everything had to be removed, dried out, and replaced. Fortunately, the plumber's insurance took care of the damage. Lesson: use licensed and insured contractors.

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

I am a licensed real estate agent.