From "crack shack" to awesome cottage
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $60,000
Cash invested: $30,000
Sale price: $142,000
Bought this home at foreclosure auction on courthouse steps in 2008. My wife and I basically rebuilt it, rented it for 10 years and sold in 2018. It generated great positive cash flow every year and sold at a $50k profit.
What made you interested in investing in this type of deal?
I'm not afraid of hard work and when I saw how bad this home had been treated, it felt like a challenge.
Also, we love Brevard!
How did you find this deal and how did you negotiate it?
Watched foreclosures and was the only bidder at the auction.
How did you finance this deal?
Cash out of pocket.
How did you add value to the deal?
Total renovation.
Put in $30-40k into this home renovation and certainly could have done a lot less, but we were proud of what we achieved.
What was the outcome?
Total victory! $50k profit on the sale, after bringing in positive cash flow for 10 years.
Lessons learned? Challenges?
Don't assume that your super-safe area doesn't have a bad street with bad neighbors.
Don't over-do it on finishes. This little cottage didn't need granite in the bathroom (which we did).
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was the Broker on this one. Call me!
