2nd renovation loan, 1st probate house

[Wes Waggoner]

Investment Info:

Single-family residence buy & hold investment in Ocean Springs.

Purchase price: $125,000
Cash invested: $7,500

Another renovation loan with my brother Patrick. First bigger rehab. All new floors, new kitchen cabinets, new appliances, and odor remediation.

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

Good neighborhood and good size of home to do a first "bigger" rehab

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

MLS, missed getting it the first time around when it went pending, but when it came back on the market we got it. Market was heating up at this time, but we did get some closing costs paid, otherwise paid asking price (still ~$15K under market value since it need some work)

How did you finance this deal?

Renovation loan, same regional bank as the last one

How did you add value to the deal?

New flooring, kitchen cabinets, granite countertops, new appliances, odor remediation, lots of landscaping

What was the outcome?

Came in just under rehab budget. Rented out right away for ~$200 more per month that typical homes in the area.

Lessons learned? Challenges?

Since we didn't have to repaint the interior, the only method that worked getting the smoke stench out of their was hiring an odor remediation company (~$750 for that size of house). Totally worth it, but should have done that before we allowed the property manager to show anyone the (in progress) house. The smell turned off some A+ tenants. Still got a great tenant, but I don't want to build the local reputation of having stinky houses.