First SFR in my portfolio!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $70,000
Cash invested: $38,500
Purchased and rehabbed with all cash from savings. First property Purchased for our portfolio. Total cash invested $108,500. Appraisal in 2023 for 165k. Used a BRRR method to cash out 96k to repay myself and deploy to the next deal. Rents for $1525 per month.
What made you interested in investing in this type of deal?
I have been wanting to get into real estate investments since early 2000s. Finally made the leap after a bad car accident left me unable to work as a Physical Therapist. Used lawsuit proceeds to finally get started in my hometown.
How did you find this deal and how did you negotiate it?
This Home was my grandmother's. She needed to transition to single level living and I had the cash to assist.
How did you finance this deal?
All cash from my savings.
How did you add value to the deal?
We refinished all original wood floors from the 1910s, new kitchen, new or upgraded cosmetics, new deck, all new windows, upgraded electrical and plumbing were it was needed.
What was the outcome?
Appraisal was for 165k in 2023. I feel today the Appraisal would be closer to 200k based on neighboring comps.
Lessons learned? Challenges?
So many lessons!!! We over paid for some things and took too long on others. Our city has strict rental zones and strict rental codes. So we learned how to work with the city. Also how to vet bettwr- our first two families eneded up getting evicted. We also learned that my grandfather wasn't as handy as we thought over the years. He had many dangerous small fixes that were completed by him and other family members over the 70 years he owned the home.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No
