This actually started as a client project for us. Through a series of unfortunate events, they chose to sell the property and remove one less stress from their lives. We stepped in and offered to take it over entirely. This project is a complete gut. We finished the basement and added one bedroom and bathroom to the home while utilizing the space more efficiently in the house. We heated the garage and refinished the front porch too. This project is still underway, stay tuned for more updates!

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

It started as a project that our client had us working on for them and then the opportunity arose for us to take it over. I love large rehabs like this, it allows us to maximize the home's potential and gives us more control over the final product (as long as the numbers allow for that).

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

We started as just the contractor for it and later became the investor on the deal. We discussed an interest rate that would go to our clients for continuing their financing on the project and I chose to give them a great rate from the start as a thank you for allowing us to take things over and hopefully help them recoup their initial investment.

How did you finance this deal?

Owner Financing. They used their cash to purchase the property and a bank loan for the rehab.

How did you add value to the deal?

We fully gutted the home, added three bedrooms and one bathroom to it. We also heated the garage and refinished the front porch.

What was the outcome?

To be determined. The purchase price was $70,000 with a $122,400 rehab bringing us to $192,400 invested. After financing and closing costs, we are set to make about $30,000.

Lessons learned? Challenges?

Opportunities to get in the game are everywhere. Just jump in and get after it. - I'll let you know the biggest challenge once it's sold, I'd hate to jinx myself this early in the rehab... haha

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

So far we have great professions working with us! I'll let you know more about it once the project is wrapped up.