First brrrr for myself.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $25,000
Cash invested: $3,200
Seller finance for 2,500 down plus 700 in closing costs. Purchase price was 25k with 7% interest over 20 years for payments of $174 a month over 20 years. I put roughly 35k into and it appraised at 105k allowing me to pull 43k out and remain at >65% LTV. HUD/FMR rate for a 4BR in Marietta, Ohio is 1400, which we rented it out and had a tenant within 3 days of posting.
What made you interested in investing in this type of deal?
I was trying to find my way wholesaling and rehabbing houses for the guy who became my mentor. I brought it to him trying to make an assignment fee and he told me I needed to buy it myself.
How did you find this deal and how did you negotiate it?
I was working on the house across the street. I asked the neighbors if they knew anything about the house that was vacant. They told me a debt collection company owned it. I used the regrid app to find who owned it, googled their info, and called them.
How did you finance this deal?
Seller Financing. Used a Lowe's account for the materials. Used my own money for labor.
How did you add value to the deal?
We completely redid the house, which was unlivable.
What was the outcome?
We refinanced it and pulled all our cash out plus roughly 5,000 while leaving 40,000 in equity. It also rents for 1400 a month.
Lessons learned? Challenges?
So many. I learned that working for an investor and being the investor brings different sets of challenges and fears. I learned that I didn't have to do all the work myself. I have to stick to my lane and do what I am good at and hire guys to do what they're good at. I learned not to take the first prospective tenant that flashes the cash. I learned what things needed to be done better, and what things didn't matter as much.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
The lender I worked with to refinance this when it was done was great.