Auction success log home on 8.5 acres
Investment Info:
Single-family residence buy & hold investment in Nolensville.
Purchase price: $414,000
Cash invested: $56,000
Bought at auction. Appraised $135k above purchase in less than a year.
What made you interested in investing in this type of deal?
Auction, research suggested the house would sell below market, cosmetic improvements could improve value, highly desirable area.
How did you find this deal and how did you negotiate it?
Research of mls, auction sites, working with agents, driving neighborhoods.
How did you finance this deal?
Conventional it’s personal cash down. I have a relationship with a banker who understands investors.
How did you add value to the deal?
Cleared some land, renovated master bath.
What was the outcome?
Bought for $414k including auctioneer fee. Appraised for $505k. Spent $13.5k to clear trees. Spent $20k to renovate bathroom. Appraised for $550k.
Lessons learned? Challenges?
Do not plan on a lot of interior renovations to vastly improve property values. That’s not a sure thing based on comps. Adding square footage, decks and such have a greater impact. County doesn’t. Always approve expansion plans due to perk limitations. Not all architects understand building costs.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I used my agent to help me close after I found the deal. It’s worth his fee to me. In an auction, the auctioneer pays it out of his fee. Victor Ganatra. He does good work. I have my banker at Capstar Bank. Will share her name if we can network and share valuable resources.