Investment Info:
Single-family residence buy & hold investment.
Purchase price: $374,000
Cash invested: $130,000
I purchased a 1940s rowhouse that needed complete renovation. The owner had lived in the property for 30+ years and was in her upper 80s. Many repair and maintenance items were way past due. I saw a sweat equity opportunity and gutted the entire property and renovated it up to todays standards.( I subbed out the trades and main work, I just managed the work) I now have a rental unit in the lower level and my Fiance and I live in the top 2 floors.
What made you interested in investing in this type of deal?
The location was great and talk of a metro station less that a mile from this location as turned out to be true. Less than 5 minutes to a Major Airport and walkable to many restaurants, shops and night life.
How did you find this deal and how did you negotiate it?
I found the property on the MLS and negotiated with the listing agent. It was over a holiday weekend I still think I would have lost the deal if there were more people in town that weekend.
How did you finance this deal?
5% down conventional Financing. Cash for renovations
How did you add value to the deal?
Renovations and Rental Unit
What was the outcome?
Property is complete and serves a primary residence for myself and rental unit to generate monthly income.
Lessons learned? Challenges?
managing construction is a full time job and takes a lot of perseverance. Things will always go wrong and you need to find a work around to keep progressing.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes I acted my own agent but I used a local Lender who is well versed in all types of lending. I would recommend him and his firm for sure!
