I’m trying to set myself up to get out of the corporate ladder to nowhere. Like anyone else, I want more time to be creative and help others along the way.

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

MLS and had the help of my agent Victor Aves who's also an investor to analyze the deal.

It has been sitting on the market for a while and visited it twice. After two price cuts we saw it come into a price range that made sense so we put an offer. We also got an opportunity to speak with the owner who was also an agent before closing in person! After getting HVAC and a roof thrown in the deal with a final price cut we closed. The interior needed significant work and electrical was all out of date so, had to sink 30k additional into the deal.

How did you finance this deal?

I partnered 50/50 with my parent and we did a conventional loan that was investor grade. Meaning 25% down. Steep, but we’ve got loads of equity now.

How did you add value to the deal?

Got set up with a good contractor who was flexible. I paid nothing upfront and he was cool with me doing the demo myself and buying most all of the supplies and controlling those costs. Pretty much just paid for labor only for his crew.

What was the outcome?

The ok condition side was already rented. Under market, but we’ll work that up progressively since the renter really wants to stay and does not want or need any upgrades. The other side got a full overhaul and is rented at full market and makes the deal cash flow positive.

Lessons learned? Challenges?

I learned that I can actually pull this off. More importantly, putting a deal under contract is when you can really see what’s going on and allows for a lot more give-and-take that I could have imagined. Investment property contract period is different then when I bought my single family home.

Challenges is dealing with the fear of missing something big.

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

Victor Aves is knowledgeable and has the gravitas to really help in a negotiation, but looking for someone who is interested in helping me achieve my goals. He’s a bit busy and spends most of his time managing his own portfolio.
Caliber home loans was a very professional and capable group. I’d recommend Christian Johnson.