Investment Info:

Single-family residence buy & hold investment.

Purchase price: $67,000
Cash invested: $28,000

I bought this property after it had sat on the MLS for a few months. I made a very low offer and after a little back and forth, we were under contract. I was able to purchase this house with cash which helped save money throughout the rehab. The reason this house caught my attention was that it was listed as a 2 bed 1 bath but it had over 1,000 sq ft. This made me believe that a 3rd bedroom could be possible. The house essentially had 2 living rooms so I was able to frame a wall and closet in for a very good sized 3rd bedroom. The renovation took me about 5 months as I did about 75% of the work myself. I then rented it out to a couple young professionals who have actually improved the property since they've lived there (Best tenants ever!). About 9 months in I had the house reappraised and did a cash out refi which allowed me to purchase a duplex in Linden.

What made you interested in investing in this type of deal?

The house needed updating by the bones were good. I also saw an opportunity to convert it from a 2 bedroom to a 3 bedroom

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

Off the MLS. It had been on the market for several months as it was overpriced. They had just reduced the price a little and I came in with a pretty low cash offer but it got them to start negotiating.

How did you finance this deal?

Cash

How did you add value to the deal?

Almost a complete renovation was done. New siding, windows, refinished the hardwood floors and added new flooring, extensive drywall repair and a new kitchen

What was the outcome?

I bought the house for 67k and put about 28k into it. The renovation turned out great and I was able to get a premium for rent. The home also appraised for 125k after the renovations so I was able to pull out almost all of my money to buy another rental.

Lessons learned? Challenges?

Don't try to do everything yourself! there were things that I probably should have contracted out to save time but in the end it worked out.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I can recommend a few great contractors!