Investment Info:
Single-family residence buy & hold investment in Columbus.
Purchase price: $232,000
Cash invested: $10,000
Bought for $232,000 (Listed at $235,000)
What made you interested in investing in this type of deal?
Great Deal
Property Appraised "AS IS" at $270,000
How did you find this deal and how did you negotiate it?
Found on MLS
Negotiated a $5,000 Check at Closing for Repairs
How did you finance this deal?
5% Down on a Conventional Loan
Will only pay PMI for 9 months due to 20% loan to value ratio
How did you add value to the deal?
$12,000 worth of repairs (+2 months of after work sweat equity) and it is now valued at $310,000
What was the outcome?
After closing costs and my agent commission, I turned $12,000 of cash into $70,000 of real estate equity. I will rent this house in the summer for $2,500.
Lessons learned? Challenges?
Spend the money on a structural engineer; it's worth every penny. A $200 consultation turned into a $5,000 check at closing!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I have a license so I have the freedom to 100% directly negotiate my own deals from start to finish.
