Weldon Street SFR investment
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $108,000
Cash invested: $160,000
Short sale just prior to COVID. Terrible condition sweat equity deal needing a cash buyer. My first step into real estate using the BRRR method. Renovation cost was under estimated but purchase price was well protected from a financial loss. Home has more than doubled my original investment since 2018 (7 years).
What made you interested in investing in this type of deal?
Worst home on the street. Great entry point to the market. Great upside. 2 bathrooms versus 1 for this price point. Fear of waiting and not acting on opportunity. Numbers worked.
How did you find this deal and how did you negotiate it?
MLS. Ran escrow through its time and asked for significant price reduction at end of escrow.
How did you finance this deal?
pulled home equity line of credit loan following completion.
How did you add value to the deal?
Renovation.
What was the outcome?
Consistent rent and appreciation.
Lessons learned? Challenges?
Renovations are a TEAM project. You will be stuck and losing income if you do not flip a house with a TEAM.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. Daniel Miller (real estate agent)