My First Investment Property!!
Investment Info:
Single-family residence buy & hold investment.
Cash invested: $10,000
2 bedroom/1 bath frame ranch, attached garage and sunroom, 800 sq ft
What made you interested in investing in this type of deal?
I am building a portfolio of properties and I also want to contribute to bringing property values back up by investing in the area.
How did you find this deal and how did you negotiate it?
A friend gave a coworker my information. She contacted me and expressed an interest in selling her mother's home because it had been vacant for 4 years. I visited the property to do a walk through to see if I could help. She initially wanted $10k for the property. After inspection, I told her that I could only offer $1k due to property condition, but she would no longer have to pay the taxes or any of the expenses of maintaining the property and I would handle cleaning out the property.
How did you finance this deal?
Cash
How did you add value to the deal?
I am adding value by adding a new roof, plumbing, updating electrical, doing full renovation in the kitchen and bath, refinishing original hardwoods and additional cosmetic touches.
What was the outcome?
Still a work in progess...
Lessons learned? Challenges?
So far I am learning to manage contractors. One major challenge I am currently facing is the COVID pandemic in the midst of a rehab.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Looking forward to working with a lender soon to refinance the home, following the BRRRR method.