Investment Info:
Single-family residence other investment.
Purchase price: $77,500
House in Colonial Acres (38117), was vacant for 9 years. Purchased without seeing the inside of the property. Use hard money for purchase and rehab. Purchased house for $77,500, and spent $28,000 on renovation. I used to be a contractor and did 90% of the work myself.
What made you interested in investing in this type of deal?
I love the area. I have lived in this neighborhood for 9 years. I ran the numbers every way imaginable and they worked.
How did you find this deal and how did you negotiate it?
This house is on a 5K route I run from my house. I located the owner via tax assessor. Long story short, 6 months after calling and negotiating she decided to sell to a wholesaler for $15K less than I offered her.. Haha still don't understand that.. I then found the wholesaler and purchased the property from him for $15K more than I offered the original owner. Long story short that wholesaler clipped 30k very quickly.
How did you finance this deal?
100% hard money to purchase and fund the rehab. I am doing a cash-out refi this week and will be getting close to 30K back.
How did you add value to the deal?
I did nearly all the renovation myself. I take pride in my work and make sure everything is done perfectly. I chose not to do things that look good, but things that will last a long time - For example: covered the entire north face of the roof with Ice&water, I know this roof will last at least 20 years.
What was the outcome?
I have a Tenant moving in next week at $1500 a month.
Lessons learned? Challenges?
Forever subbing out Demo work.... Never again will I do that...
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No
