Michigan Investment Property

[Quentin Davie]

Investment Info:

Single-family residence buy & hold investment in Southfield.

Purchase price: $80,000
Cash invested: $16,000

Purchased Home 3/2 for $80,000. It appraised before closing purchase for $115,000. The home needed $25,000 in renovation. ARV $140,000. I used private money lender for purchase and 100% of rehab funds. Leased up at $1500 and refinance in Feb 1, 2021 for 70% ARV= $98,000 and pay private lender off at $78,300.

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

BRRRR opportunities

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

MLS via RE agent . The deal had fallen out of contract twice.

How did you finance this deal?

Hard money 20 % down.

How did you add value to the deal?

New flooring, kitchen counter, appliances, furnace, and windows.

What was the outcome?

It appraised for $140,000 2/1/2021 and leased for $1,500

Lessons learned? Challenges?

Do it again. Beware during due diligence the age of furnace , roof, etc that will potentially need to be replaced when you take ownership. The only hiccup was furnace went out and we paid $4,500 to replace it.