Investment Info:
Single-family residence buy & hold investment.
Purchase price: $40,000
Cash invested: $12,000
Cute 900 sq ft Cape Cod with all natural hardwood floors. This property was a foreclosure and needed some repairs (roof, cosmetic, furnace, floors sanded and stained/urethane, & landscaping).
What made you interested in investing in this type of deal?
Great price in a good neighborhood
How did you find this deal and how did you negotiate it?
My real estate agent (at the time)
How did you finance this deal?
Cash sale
How did you add value to the deal?
Tore out carpeting and restored original hardwood floors, new furnace, minor cosmetic (paint, cleaning, etc).
What was the outcome?
All equity
Lessons learned? Challenges?
Do as much of the work yourself (what you know). For the jobs you don't know-hire a good company. DON'T go with the cheapest company to do the work- you'll pay for it later on down the road (missing shingles, peeling paint, wasted materials, etc.). Always get at least 3 bids before deciding on a company to go with for hire.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, at the time. They have now since retired as I was starting out with my real estate agent's license.
