Single-family residence buy & hold investment.
Purchase price: $35,000
Cash invested: $40,000
Purchased in Warren, MI for 35k cash plus ~5k repairs (fixed up myself), closing costs, taxes, etc.
Currently rented to a long-term tenant at $750. Identical house next door rents for $850, so higher potential.
What made you interested in investing in this type of deal?
Only interested in Buy and Hold at the moment. Trying to replace my engineering salary within 5 years or less!
How did you find this deal and how did you negotiate it?
Through an investor group on facebook - off market.
How did you finance this deal?
My own cash. Will get a cash-out loan after 6 months.
How did you add value to the deal?
House was in pretty good shape and only needed cosmetic rehab. I painted everything, replaced the entire bathroom and changed the countertops in the kitchen.
Lessons learned? Challenges?
It seems like the house was built around the bathtub... after messing up the re-glaze I was planning to do (didn't prepare the surface well enough) I decided to replace the bathtub altogether. Ripping it out and putting the new one in took me about 14h.
Lesson learned: Next time hire out the re-glaze.
Congratulations on your investment @Daniel Wuerdinger . Thanks for sharing this with us.
The deglaze issue Sounds like something that would happen to me. Just my kinda luck. Anyway, congrats on your place and wish you the best on making your goal.
@Leonard L. Yes, its very messy. Honestly I think it's definitely worth hiring out for a few hundred bucks. I won't try it again... Redoing everything was quite horrible - so many problems!
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