First Home, Bought with intent to HELOC for more multifamily

[Sterling S.]

Investment Info:

Single-family residence buy & hold investment in Franklin.

Purchase price: $20,000
Cash invested: $25,000

Heloc... 45k investment on our first home. ARV is $110K-$120K should replace cash invested and $50k to invest in more multifamily.

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

There is a time and place for renting but we were well past it.. I knew his deal had ALOT of room for profit.

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

Friends of Friends. House was Going to be lost to tax Foreclosure, Worked out a deal with owner, where I stored their stuff for 12 months and offered $20k for the house. (I solved a problem no one else wanted too. She (former owner) has fair amount of unreplaceable items she didnt want to loose.)

How did you finance this deal?

CASH

How did you add value to the deal?

Rehabbed the entire house....

What was the outcome?

Its pretty Dope.... So far inside is done, we've Moved in and now I'm working out bugs, finishing up other projects, then I'll finish Exterior and HELOC the first of the year. I purchased it in July but had a 4 unit to get cashflowing first.

Lessons learned? Challenges?

Everyday for the first two weeks of demo/prep I got 3 more days behind. Went $5k over budget. Not because I had to but because emotions, and my own family/kids living here. Everything is "Smart" lights, outlets, appliances etc. Customized the kitchen past necessary but Happy wife. Happy life.

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

Real Estate Agent advised how to proceed, provided contract and Title Agency.

Lisa Feltman
Dayton, Kettering, OH