Maumee SFH - personal residence BRRRR

[Chelsea Ziss]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $66,500
Cash invested: $20,000
Sale price: $143,000

This was our personal residence that we bought with the intention of using it as an investment.

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

We want to buy our 1st house, but also wanted to make a smart investment decision. We bought it with the intention of doing what we called at the time a "long flip."

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

It was a bank foreclosure home, so we couldn't do a whole lot of negotiating.

How did you finance this deal?

Since this was going to be our personal residence we used an FHA loan.

How did you add value to the deal?

Over about a period of 5 years, we redid the roof, the bathrooms, an update on the kitchen, new paint, new lighting fixtures, basically all the things you do to a normal home you live in.

What was the outcome?

The outcome was awesome. We bought it for $66500, and sold it for a $143000. Over the 7 years we lived there we maybe spent 20 grand total doing the updates.

Lessons learned? Challenges?

Buying the absolute worst house we could find in a nice neighbourhood was absolutely the best way to go. It barely BARELY passed the FHA inspection, and we even had to have a contractor friend write us a letter for the roof. The only thing I do differently, is if we didn't have a newborn at the time, I would have tried to do the same thing but with a 4 plex or duplex instead.

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

Nope. The agent we used at the time was so terrible that it made me want to become an agent myself, so I could do a better job