First deal that got me started

[Preston Roper]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $248,000
Cash invested: $15,000

This was a primary residence that i did a Basement renovation and the two bathrooms and then refinanced. The area had a highend mixed use development going in just outside of the neighborhood and the first apartment building finished up right as i was refinancing. The are had a lot of growth and i was able to refinance and pull close to 50k out of the property while also increasing my equity because the value almost doubled.

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

The house was not appealing to most because it was outdated and the previous owners where smokers so i need some work to be up to the standard of the neighborhood. I also new that the development was going to have a positive impact on the area.

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

It was on the MLS in a area that i was hoping would grow in value.

How did you finance this deal?

for the financing i think i put 10% down and moved into the property and did a live in flip. Once the renovation was done i did another conventional refinance.

How did you add value to the deal?

The renovation involved re-carpeting the house and a full paint job. What really added value was the additional SF that i got from finishing off the basement which added a bed room and an additional living / kitchenette area. The two other areas that i updated where the bathrooms. After the renovation and the down payment i think the total cash left in the deal was about 30k.

What was the outcome?

The overall outcome was an increase of 10% and 50k cash out that i used to finance a nice flip.

Lessons learned? Challenges?

Definitely capitalize on being in the path of progress, if the mixed use development had not been successful then the neighborhood that i was in would not have increased in value nearly as much.