My first first rehab as an Real Estate Agent

[Michael Berger]

Investment Info:

Townhouse buy & hold investment in Valencia.

Purchase price: $520,000
Cash invested: $30,000

Town home in Valencia, CA. 2200 SQft, 3 Levels. 3 Bed/3Bath. Bought this place to live in it for a while and rent it out at some point later.

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

We sold our first home with profit and rented for two years. We found this place and decided to remodel and live in it for a while. We wanted this to be our first rental at a later point.Great location near a school and park.

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

I am an Agent and found it on the MLS. The owner rented it out for a while and had it listed and took it off the MLS. I called them and asked if they still want to sell and they said yes. I got it for a good deal!

How did you finance this deal?

FHA loan and some cash we had from the previous sale of our first SFR!

How did you add value to the deal?

Place was run down and I remodeled it with some help and contractor friends. We put in new flooring and carpet,paint and refurbished the Kitchen cabinets and added an island with Quartz Counter tops.New bathroom vanities. Looks great!

What was the outcome?

Place looks like new and is near a great school. Will rent as soon as it makes sense for us!

Lessons learned? Challenges?

Working with contractors was a learning curve. Not all of them were reliable! Learned to pay contractors in advance and manage money and material purchases. Giving instructions to contractors and manage timeframe until completion. Dealing with deadlines etc.

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

I am an Agent myself so that helps. I worked with a Lender here in town. Yes I would recommend him.