Investment Info:
Single-family residence buy & hold investment in Summerville.
Purchase price: $160,000
Cash invested: $53,000
Purchased a single family fixer upper in Summerville sc. We got the home for 160000 paying 20% down with a conventional loan. Most of the repairs were cosmetic, but we replaced all the floors installing lvp, repainted the whole house, and renovated the master bathroom along with a lot of other cosmetic repairs. Most of it was self performed with the exception of some bigger tasks like painting, flooring, duct work tree trimming. All in this cost about 17000 including carrying costs and all other utilities. We paid a property management company and they have now placed a long term renter at 1600/month.
What made you interested in investing in this type of deal?
I have been house hacking my personal residence since moving to Charleston, with the current appreciation I was planning to re-finance and build new as that was the industry I was in. The lot fell through and that was at the same time I discovered bigger pockets podcast. I got hooked and new getting a rental is where I wanted to put this money. Immediately pulled the trigger on the first deal that made since. Numbers worked better than I thought they were going to at first.
How did you find this deal and how did you negotiate it?
Realtors husband was about to list it. We made an offer off market, but they listed anyway. The buyer that beat us fell through so we made another offer before they put it back up. It was more than I wanted to pay at the time, but the numbers still worked in my favor for a base hit.
How did you finance this deal?
conventional financing. 20% down. will plan to brrr out of it in the future.
How did you add value to the deal?
It was mainly cosmetic repairs, which totaled to about 17000 in costs. major items done were the floors, painting, major cleanup, re-routing and replacing some duct work, ripped out and re-modeled the master bathroom, and a lot of clean up.
What was the outcome?
Outcome was better than I hoped. A renovated comp down the road just sold for more than i thought it would, and they don't have as many features as mine. It has a 2 story basically 2 car width garage that i may finish out down the road. The garage has a full sub panel so i am excited with the options in the future for an air bnb. The area is also going to appreciate a lot in the next few years with the amount of commercial business that have moved in the area.
Lessons learned? Challenges?
I am not a plumber. I left my job at the same time as buying the house, so i figured i would do as much work as i could myself. That was a mistake and I really wish i would have subbed a few small things out at the end. The punch list drug on and it took a little longer than I thought to do the work. I still got it done by the end of the year and a renter in on 1/19.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My real estate agent was great. I don't think you would consider her an investment focused agent but she was still amazing to deal with and knocked this out the park. I was back and forth on my criteria so I think she did amazing with what i gave her that is on me. My lender and attorney were also seamless. If you want recommendations for either let me know.
