First Single Family Property

[Joey Hicks]

Investment Info:

Single-family residence buy & hold investment in Athens.

Purchase price: $35,000
Cash invested: $115,000

We're still in the process of rehabbing. It's been a slow process due to COVID. I'm thinking about getting a HELOC instead of financing. Cash flow before pulling any cash out should be $700. The most difficult part is fixing the mistakes by the subcontractors. My wife and I see this house as paying for education.

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

It was going to be an easy BRRRR.

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

I found this deal on Zillow and negotiated down to $35,000.

How did you finance this deal?

We did a cash out Refi from our primary resident.

How did you add value to the deal?

The biggest value add was going from a 2/1 to a 3/2. But we also replaced water and sewage pipes. Upgraded the electrical panel and wiring, new flooring, kitchen and bathroom cabinets, new appliances. Nothing in this house is original.

What was the outcome?

Property appraisal was $126,000.

Lessons learned? Challenges?

Check your contractors regularly. Know the building codes because if a contractor does it incorrectly and you have already paid
them.Your never getting them to fix it. Never pay anyone by the hour only by the job. If you can't be with them everyday nothing will get done and you will pay $$$.

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

Jennifer Cole- Keller Williams Athens TN was awesome. We looked at 10-15 properties and put bids on 4 or 5.