Single Family Buy, Rehab, Air BNB, Refinance and Repeat

[Emily Fackler]

Investment Info:

Single-family residence buy & hold investment in Kuttawa.

Purchase price: $37,000
Cash invested: $7,400

This home sits on a double lot near a marina and lake and just needs some tender love and care!

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

I have always wanted to own a home in Old Kuttawa Kentucky on Lake Barkley. The little town is so quaint and fun! It is a little neighborhood of boat and lake loving families. Even though our town is so small, we have tons of people from other and bigger cities buying property as second (lake) homes in our area.

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

Driving for dollars! I sent a note in the mail to the owner of the home and asked to buy the property as is. He told me what he thought the property was worth and I agreed with him. We really didn't negotiate at all.

How did you finance this deal?

We financed the deal through a commercial investment loan through our local bank.

How did you add value to the deal?

1,000 of the square footage was not being used and was not recorded as livable square footage on the home. It was listed as a 2 bedroom, 1 bathroom. I knew we could add another bedroom and bathroom as well as 1,000 square footage once it was reappraised. It was also on a street where the houses around this home had split their lots and had houses on the back of the lot. I knew i could subdivide the lots and have multiple exit strategies on the property.

What was the outcome?

We just began rehabbing the house. I will update this post as we go along! However, our plan is to BRRRR the house to finance the back lot so that we can build a small house on the back subdivided lot and rent that house out as well.

Lessons learned? Challenges?

Again, building relationships with the sellers is an absolute must. I love getting to know different people and it is fun hearing their stories. If I didn't build a relationship with the owner, he could have sold the property to multiple other people that offered.

Also, be diligent in the contract and timeframes when the house you are buying is filled to the brim with belongings.

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

Same lender! Farmers Bank of Eddyville Kentucky. Our family highly recommends!