Single-family residence other investment.
Purchase price: $76,000
Cash invested: $4,000
Originally on a VA loan, then refinanced for a cheaper rate(still VA), and then refi cash out for value up to ~115k
What made you interested in investing in this type of deal?
Easy construction remodeling, good deal to force equity into, refi made sense for living situation and cash now.
How did you find this deal and how did you negotiate it?
Realator for initial buy, random call from loan officer for better rate on refi for my monthly finances, was looking for financing to finish remodels(like an equity line of credit) but just coughed up the extra money with a new 0% interest rate credit card plus signs up bonus and then pulled the appraisal for the refinance and took a hit on the refi funding fee but still made out for my living situation and profits.
How did you finance this deal?
How did you add value to the deal?
Had the sellers pay for closing costs and also to pay for the new roofing material.
What was the outcome?
Profit margins of around ~23k, and still have the house that isn’t maxed on its current market size for safety margins of market buffering or easier forced equity to stay afloat. Currently set as a cash flow rental.
Lessons learned? Challenges?
A full roof with average crew is not the best idea but is the cheapest. Tight finances were a challenge. Learned many different experiences. First initial mortage was a mortage reseller.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Most were helpful, but were pretty new besides the loan officers i have worked with in alpha mortage, sunsets mortage, and loan depot. Loan depot’s website are not very user friendly.
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