New Investment Venture

[Jonathan Ogden]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $145,000
Cash invested: $110,000

Purchased a home in need of full gut remodel. 1107 square feet, 2 bedroom 2 bath. After remodel, should be an ARV of approx. $260,000.

How did you find this deal and how did you negotiate it?

Found the deal on the MLS. Sent letters to many agents representing distressed properties.

How did you finance this deal?

Bought the home with my cash. Funding the remodel with a HELOC

How did you add value to the deal?

Full gut remodel

What was the outcome?

Remodel is about to being

Lessons learned? Challenges?

My biggest concern is that there is an edition to the home that was not permitted. I did not understand this until I received quotes from contractors. This may come back to bite me. I will only know once permits are pulled and inspectors review the work.

[Dominic Mazzarella]

Quote from @Jonathan Ogden:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $145,000
Cash invested: $110,000

Purchased a home in need of full gut remodel. 1107 square feet, 2 bedroom 2 bath. After remodel, should be an ARV of approx. $260,000.

How did you find this deal and how did you negotiate it?

Found the deal on the MLS. Sent letters to many agents representing distressed properties.

How did you finance this deal?

Bought the home with my cash. Funding the remodel with a HELOC

How did you add value to the deal?

Full gut remodel

What was the outcome?

Remodel is about to being

Lessons learned? Challenges?

My biggest concern is that there is an edition to the home that was not permitted. I did not understand this until I received quotes from contractors. This may come back to bite me. I will only know once permits are pulled and inspectors review the work.

Hey Jonathan, the unpermitted addition is the part I’d focus on immediately. I’d talk to the building department before you get too deep into the rehab. Not in a panic, but you want to understand whether they’ll let you permit the current work around it, whether they’ll require plans, whether anything has to be opened up, and whether the addition can be brought into compliance or needs to be removed/altered.

The numbers may still work, but unpermitted square footage can change the deal fast if it affects scope, timeline, appraisal, insurance, or resale.