Worst house in Great neighborhood

[Brian Christopherson]

Investment Info:

Single-family residence buy & hold investment in Wasilla.

Purchase price: $274,000
Cash invested: $10,000

We learned from our last mistake and bought a foreclosure in a much nicer area. The house had been flooded, so there was some minor mold remediation that had to take place, and the house interior colors were purple on purple on purple, so paint was a must.

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

We wanted to get out of our old area and into a house that we couldn't over improve.

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

We found this as a random last stop on a drive looking at properties. It was bank owned, so most of the negotiations was in the form of finding financing that would fit our round peg in their square hole

How did you finance this deal?

After some difficulty in finding financing we finally found out about the VA renovation loan. It allowed us to finance the purchase cost plus about $40k in initial rehab costs

How did you add value to the deal?

So far we have put in all ne flooring, painted interior, replaced a sliding door with a oversized exterior swing french door, and started on landscaping. On the list is all new lawn, exterior paint, a detached garage, full bathroom remodels and counter and cabinets in the kitchen. hoping to sale it for $450k or more

Lessons learned? Challenges?

So far the biggest challenge has been the VA Reno loan. Biggest lesson in that was don't buy down a loan if there is even a reasonable chance you will be refinancing