My 2nd property, First Rehab

[Matthew Rolf]

Investment Info:

Single-family residence buy & hold investment in Katy.

Purchase price: $147

Purchased for 147k in Old Katy. Rehabbed for 16k. ARV of 195k. We were going to BRRRR, but now are leaning towards doing a 1031 exchange if Hawaii vacation rental markets soften. We bought end of Feb 2020 and had renters in by May 1st 2020. We ended up meeting an amazingly affordable and trustworthy contractor towards the end, so that will be a huge help next time.

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

Well, I only had to listen to about 250 BP podcast episodes before I took action, ha

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

Scraping the MLS everyday. Simple negotiations from 155k list price to 150k + 3k closing costs assist based on comps / condition of property.

How did you finance this deal?

Conventional Loan 25% down.

How did you add value to the deal?

Sweat Equity

What was the outcome?

TBD. We have great renters and cash flow after expenses, but have plans for a vacation rental in Hawaii someday.

Lessons learned? Challenges?

Don't over rehab. Rehab costs will be more than you think.

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

I was a Physical Therapist and I was interested in investing for a long time. Finally we did it. Now I have my real estate license and am LOVING it.