My first investment property that wasn't a live in flip

[Jenn Barona]

Investment Info:

Single-family residence buy & hold investment in Gainesville.

Purchase price: $85,000
Cash invested: $43,000
Sale price: $155,000

Purchased this off market deal with a private lender. The house was "livable" but needed a complete makeover from top to bottom. One of the benefits was a 5 year old metal roof but later on in the remodel we realized it was put on by some rando and was completely incorrect. We ended up having roof replacement, HVAC installed (there was only window units), flooring, painting interior/exterior, light fixtures, new kitchen, and 2 new bathrooms. Once reno was completed we listed online and had several applications day 1. Rented out for $1500 a month with a 1 year lease. The neighborhood is a C classification but I live/work local so its just managed by me and my wife with no issues so far.

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

I knew the numbers would make since but I didn't have the cash myself for the purchase. I was planning on assigning it to an end buyer but I thought id see if we could work it out for a deal myself. I called a lender and he said he would be willing to partner with me.

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

I am known as the investor friendly, deals with crappy properties in my office so I had another Realtor in my office reach out to me and asked if I knew anyone who would be interested in buying it. I originally negotiated on the price and got it under contract.

How did you finance this deal?

Private lender

How did you add value to the deal?

I paid for and oversaw the project from day 1 and the private lender paid for 90% of the home. That way I had some skin in the game but he still made a good chunk when I refinance to pay him back.

What was the outcome?

For the most part the reno went as planned. Took a little longer than we expected and we ended up having to put on a new roof but in all it went fairly well.

Lessons learned? Challenges?

Make sure you have a timeline that the contractor/handyman is going by. I had a friend/handyman do the project in between his full time job which took WAY longer than expected.