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Updated over 4 years ago,
1st buy and hold property!
Investment Info:
Single-family residence buy & hold investment in Lake Jackson.
Purchase price: $97,000
Cash invested: $15,000
We replaced the roof, fixed the foundation, replaced the flooring, painted interior and exterior and a made few other cosmetic updates.
What made you interested in investing in this type of deal?
It was a foreclosure, so the price wasn't bad for the fairly light rehab it needed.
How did you find this deal and how did you negotiate it?
An investor friendly realtor brought this to me. Since this was bank owned and the market was pretty hot, there was very little negotiation. In fact, my realtor had already negotiated the price down before he brought it to me - and the bank was willing to go no lower.
How did you finance this deal?
We used hard money. We paid 7% interest for 2 months, paid $9k down, financed $30k in repairs, and then refinanced to a $114k, 30 year note at 3.25%
How did you add value to the deal?
Mainly the renovation was done by contractors, I also did some of the cabinetry, cleaning, and plumbing.
What was the outcome?
The property is now renting for $1450/mo and giving us, roughly, 20% coc return.
Lessons learned? Challenges?
Because this was my 1st house, I couldn't recognize how much work a previous owner had done. It looked as bad an all the other properties I looked at. Now having done a couple more, I now use this property as my gold standard for easy rehabs and look for similarities in potential investments.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Realtor: Moon Kim --- https://www.har.com/MoonKim
Lender: Catalyst Funding, LLC --- https://catalystfdg.com/