Conway SC Flood Rental

[Pete Schmidt]

Investment Info:

Single-family residence buy & hold investment in Conway.

Purchase price: $75,000
Cash invested: $30,863

Purchased a 2000 sqft 3 bedroom 3 bath home that was flooded in July (owner financed 3 year balloon with $0 down 8% interest). Put $30,863 of my personal funds into the rehab which included all new wood look tile floor throughout, cabinets, granite counter tops, stainless appliances, light fixtures, vanities, and added a door and closet to a bonus room above the garage to make it a 4 bedroom. All in $105,863. Appraised at $194,400. Cashed out refi of $146,250 with monthly escrowed mortgage of $1010. Rented at $1570 a month.

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

Price and potential.

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

Friend of a friend. Spoke with sellers and made offer.

How did you finance this deal?

Owner financing. Paid for rehab with line of credit. Cash out refi when rehab complete.

How did you add value to the deal?

Tiled whole down stairs, added granite, converted bonus room to a bedroom.

What was the outcome?

Cash out refi left escrowed mortgage of $1010 a month. Have it rented for $1570 a month.

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

J&P Unlimited inc. I guess I will list my company here since I found, funded, and rehabbed the place myself. Lol