Investment Info:
Small multi-family (2-4 units) buy & hold investment in Lansing.
Purchase price: $25,000
Cash invested: $33,000
Bought a fantastic house in a fantastic area of Lansing. The contractor took complete advantage of me and I wound up paying a final Contracting price of 200% what I was quoted. In my second foreclosure, I had learned. I bought and rehabbed and stayed within 120% of the initial rehab cost. In my third foreclosure, I only rehabbed what was truly necessary, beautified what made the home more valuable, and spent 90% fo the initial rehab estimate.
What made you interested in investing in this type of deal?
I enjoy the process of taking a broken home and beautifying it and the neighborhood.
How did you find this deal and how did you negotiate it?
Zillow
How did you finance this deal?
Cash from selling my Primary residence
How did you add value to the deal?
Rehab and landscaping.
What was the outcome?
I have a single family home (3 of them actually) which provide $600 in cash per month, $550 in cash flow per month, and $1,300 in cash flow per month - after only 9 months of having made my first investment.
Lessons learned? Challenges?
Get multiple quotes from contractors. If the contractor does not finish on time, raises the price or otherwise shows poor judgement or service, black ball him/her in the future and never look back.
