Completed 3rd single family home!

[Laura Bowler]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $33,000
Cash invested: $6,700

Bought a foreclosed house (4 bedroom, 2 bathroom) in the summer of 2020 in need of serious cosmetic rehab. We did most of the rehab ourselves, which completed in November. We then arranged for the city to inspect the house so we could get a certificate of occupancy, but two days before our inspection, the city shut down due to COVID and advised us not to wait on them. We were able to successfully rent it for $1050 a month at the beginning of January 2021.

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

It was a slightly larger home than the others we had bought, and it was our first experience with a foreclosure / auction.

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

It was a bank foreclosure sale so our realtor bid on our behalf. I ran the numbers and gave him a maximum bid, and we were successful in winning the auction.

How did you finance this deal?

Cash

How did you add value to the deal?

Did most of the rehab ourselves. Bought the house for $33K and it's probably worth $50K after renovation (with only $7K in rehab budget).

What was the outcome?

Property was successful rented to a tenant for a one year lease at $1050 per month

Lessons learned? Challenges?

Need to figure out how to speed up rehab with long lead time items like windows.