All Forum Posts by: Michael Mortensen

Investment Info:

Single-family residence buy & hold investment in Sheffield Lake.

Purchase price: $60,000
Cash invested: $17,000
Sale price: $110,000

Bought a SFR from an online auction for use as a rental. I had the ability to pay a few extra dollars for it and did. Put 17k into it ( Roof, Appliances, Shaker Cabinets, Quartz Countertops, Doors, Wide Plank Flooring etc) I was testing my theory of nice rental in a market that isn't high end. I used one of the recommended Landlord software (Avail.co) and put up the listing. I had 38 communications, 12 showings and 3 applications, 1 of which wants to purchase it and not rent it.

What made you interested in investing in this type of deal?

I needed a some buy and hold so i can pass through some expenses to my LLC lowering my taxes.

How did you find this deal and how did you negotiate it?

Online auction

How did you finance this deal?

Cash

How did you add value to the deal?

Rehab, Market Knowledge

What was the outcome?

Deciding if i want to sell outright or do a rent to own.

Lessons learned? Challenges?

challenges are taxes. Everything i do is trying to avoid having a monster bill at the end of the year.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Single-family residence buy & hold investment in Sheffield Lake.

Purchase price: $60,000
Cash invested: $17,000
Sale price: $110,000

Bought a SFR from an online auction for use as a rental. I had the ability to pay a few extra dollars for it and did. Put 17k into it ( Roof, Appliances, Shaker Cabinets, Quartz Countertops, Doors, Wide Plank Flooring etc) I was testing out my theory of providing some creature comforts that the local high end markets have in a market that isn't high end (B- neighborhood). This deal was all cash and I had planned on BRRRing is once i was done. I used one of the recommended Landlord software (Avail.co) and put up the listing. I had 38 communications, 12 showings and 3 applications, 1 of which wants to purchase it and not rent it. Now I'm in a pickle due to already flipping some property earlier in the year and trying to lower taxes at the end of this year. LOL what to do. Well at least my theory was correct... make it nice and people are willing to pay.

What made you interested in investing in this type of deal?

I needed a some buy and hold so i can pass through some expenses to my LLC lowering my taxes.

How did you find this deal and how did you negotiate it?

Online auction

How did you finance this deal?

Cash

How did you add value to the deal?

Rehab, Market Knowledge

What was the outcome?

Deciding if i want to sell outright or do a rent to own.

Lessons learned? Challenges?

challenges are taxes. Everything i do is trying to avoid having a monster bill at the end of the year.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

The first question is where is the water coming from? once you figure that out then you can determine if it was just a 1 time occurrence or there was an outside source that may be causing it ( drain tile etc). Then its just deciding how much drywall and/or remediation you may need. 

In my most recent one it had a few leaking walls from clogged drain tile and it had tree roots under the slab which was causing the water table to rise and come through the floor. I took out the affected trees, water proofed the outside with new train tile, added a outside sump in the back yard just in case and then raised the slab and sealed it. After all the water issues were resolved i took out 4 ft of drywall and any affected studs in the lower level. No structure issues because it was a poured foundation. 

Investment Info:

Single-family residence fix & flip investment in Sheffield Lake.

Purchase price: $66,000

Cash invested: $58,000

Sale price: $175,000

Worst house on the street!  Split level with water damage, leaking foundation, sunk slab, triple layer roof that turned into the a record price in the neighborhood.

What made you interested in investing in this type of deal?

Comfortable with work needed.

How did you find this deal and how did you negotiate it?

Mls, recent price drop after being overpriced by 20k

How did you finance this deal?

Cash

How did you add value to the deal?

Our design, High end touches, converted from a 3 bed to a 4 bed by shrinking the laundry room.

What was the outcome?

Under contract in 1 day

Lessons learned? Challenges?

Spent 10k more then budget due to having to replace whole driveway and not only the damaged parts, spent to waterproof the lower level and could have found a lessor contractor but i went with a guy who i was comfortable with.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Christina Carpadis is my agent and she facilitated all marketing and staged photos. 2nd house we have worked together on and both have gone smoothly and closed at top dollar!