Updated over 4 years ago on . Most recent reply
1st Buy & Hold | Corona, CA
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $405,000
Cash invested: $115,000
House was listed in MLS. It was probate sale with no court confirmation needed.
What made you interested in investing in this type of deal?
House needs rehab, had potential, good neighborhood; so I thought I can practice BRRRR steps
How did you find this deal and how did you negotiate it?
House was listed in MLS for a while since seller refused to lower the price, we still get them about $20K less than asking
How did you finance this deal?
We use private money lender - high interest but able to close fast
How did you add value to the deal?
Rehab the interior with new paint, new flooring and added some recess light
What was the outcome?
Inside is good; however ,we did not touch the exterior -- only attract certain renters. This also lower our appraisal value during refinance.
Lessons learned? Challenges?
Don't back down if the numbers does not seems right. We made cash flow; however, we also had to cough up money for refinance. Challenges is transitioning from Rehab to Refinance -- we had hiccup in between so renters ready to move but refinance took longer since value was lower than expected. The appraisal report lower by a lot due to exterior was not up to par.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I represent myself as buyer (I have Realtor license).
Private money: I've been working with Matt McCarthy | Pivot Capital Group since 2016 when I decided to flip for the first time. I highly recommend them.
Refinance: I work with Michael Zadeh | All Coast Lending ---- work with this guy for my conventional real estate transactions.