Investment Info:

Single-family residence buy & hold investment in Cranberry Township.

4 BR ranch house in Fernway area of Cranberry Township (North of Pittsburgh). Full gut rehab from a borderline hoarder - the house had 19 cats at time of purchase (and had as many as 40 at one time according to neighbors). Slab house, no basement, converting from a 4 BR/1.15 Ba to 4 BR/2 full baths. Will keep as a buy and hold rental.

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

Slab house - no basement "issues". Brand new roof, soffit and gutters at time of purchase. Up and coming area - lot of rehabs going on. Good cash flow. Close to my house so I can self manage.

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

This one was on the MLS. Bought it while on vacation in Florida. Drove past it but did not go in. Sold fast, so did not do a walk though.

How did you finance this deal?

Conventional loan for the purchase. Combination of HELOC and 401K loan for down payment and rehab.

How did you add value to the deal?

Full gut rehab. All walls, ceilings and insulation are out - flea infestation. All new just about everything. Hoping to pave driveway, open interior, adding garage access (door to the house), new kitchen layout, landscaping, etc.

Filling six 30 cu-yard dumpsters with "stuff" from the house and yard.

What was the outcome?

Still ongoing. Did not take possession until August 2019.

Lessons learned? Challenges?

Never underestimate the potential of damage caused by too many animals in a house, or poor construction work that leads to hidden water damage around windows. I bought this house based on my realtor walking through it while I was out of town - so, "sight unseen" except for photos. Rehab will be well over estimate, but will still be a good investment. Our second deal, so still learning as we go.