Live In Fixer Upper

[Steven May]

Investment Info:

Single-family residence buy & hold investment in Kansas City.

Purchase price: $125,000
Cash invested: $19,000

Bought this 2 bed, 1 bath house in KC off market from a wholesaler. I knew the area well and knew it was priced right. I got the wholesaler to work with me on conventional financing because I wanted to do a live-in fixer upper since I am not a cash buyer. I used a 5% down conventional loan to purchase this property. Cleared the house out, painted, updated kitchen, new HVAC, foundation work, new sod, new floors in master. Bought 125k - refinanced at 168k 6 months later. Will be an Air BNB.

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

The ability to do a live in fixer upper in a great area with conventional financing.

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

A wholesaler emailed it to me - I paid full asking price and got him to work with me on using conventional financing even though most wholesalers won't do that.

How did you finance this deal?

5% down conventional loan.

How did you add value to the deal?

Bought under market value and did cosmetic upgrades to force 30k in equity in 6 months.

What was the outcome?

My girlfriend and I still occupy the house because we love the area. With the refinance we live here for extremely cheap. I am about to pull a HELOC as well. Once we move out, it'll cash flow about $350/mo as a long term rental but we will most likely do a air bnb shooting for about $500/mo.

Lessons learned? Challenges?

Always learning how to do DIY stuff as well as learning the ins and outs of a refinance.

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

I am a agent myself working with investors.