Updated almost 3 years ago on . Most recent reply
Getting started Again
Investment Info:
Single-family residence buy & hold investment in Milford.
Purchase price: $120,000
Cash invested: $40,000
2/1 SFH investment in an area ripe for revitalization. $120k with an appraisal (as is) of $186k. home (1915) built with a funky layout. Plans were to finish the attic adding an additional bathroom and bedroom and moving existing kitchen to create first floor master suite. would've turned it into a true 3/2. After consideration I found I was being too emotional with my first investment property (after a 15 year pause). I found it extremely difficult to find reliable contractors.
What made you interested in investing in this type of deal?
Low risk, potentially reasonable reward. Interest rates were low and it’s a low entry price.
How did you find this deal and how did you negotiate it?
Saw it listed on Redfin. Seller wanted $152k but for me to make the numbers work I countered at $112. We settled at $120k with a 30 day close.
How did you finance this deal?
Local lender. 30 year mortgage. 25% down and 5% interest.
How did you add value to the deal?
New foundation (unexpected), new floors, new kitchen, new bathroom, new porch, new electrical, plumbing. Paint. Finished attic and landscaping.
What was the outcome?
Will be listing it shortly. Aiming for $1600
Lessons learned? Challenges?
Expect the unexpected with really old homes. I knew I needed new floors but had no idea the house was literally built over dirt with no foundation in some areas. Termites and water damage had taken a toll over the years.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. We’ve developed a good local network that we can trust.
