First renovation loan

[Wes Waggoner]

Investment Info:

Single-family residence buy & hold investment in Biloxi.

Purchase price: $140,000
Cash invested: $8,500

First use of construction/commercial loan. Needed a new roof, portrait window, cabinets painted, and vanities. All of the rehab reimbursed thru commercial loan draws. That increased the property value by ~$25K.

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

Saw potential for value add

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

MLS, typical RE agents negotiation

How did you finance this deal?

Portfolio/commerical loan, along with 20% down payment, done with partner

How did you add value to the deal?

Capex plus cosmetic improvements

What was the outcome?

Found an A+ tenant immediately, paying over anticipated rent

Lessons learned? Challenges?

Should have been a better "BRRRR", but the sq footage was off by 300 sq ft (garage used to be enclosed as a bedroom, but that's not how we wanted to use it). Thus, need to verify sq footage when making these deals in the future.