Single-family residence buy & hold investment.
Purchase price: $130,000
Cash invested: $35,000
1750 Square foot 3 bed/2 bath home located in a C neighborhood. Centrally located in town with very quick access to everything in town.
What made you interested in investing in this type of deal?
The home was turnkey and was far cheaper than any of the other homes my wife and I looked at.
How did you find this deal and how did you negotiate it?
Introduced by realtor, no negotiations attempted.
How did you finance this deal?
30k Down with a traditional 30 year loan.
How did you add value to the deal?
This is my current residence while performing some house-hacking with wife, sister-in-law and roomate.
What was the outcome?
Foundation cracked several places and the home needs 8k to repair that and more for cosmetics as a result of shifts from the movement.
Lessons learned? Challenges?
Hire my own inspector, I suspect that the inspector was working with the contractor-seller on this one. And learn to buy at a discount, I again paid for turn-key at a high price for this neighborhood with little equity for repairs. I will fork up my own cash to get this house rent-able and should cashflow almost as well as my first house but with a large mortgage balance. I should refinance into a VA loan then grandfather it into an IRRRL loan, which is the cheapest loan I have ever seen.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
None that I would recommend at all. Lots of notorious people were involved in this endeavor.
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