buy low, fix it, hold and and sell
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $70,000
Cash invested: $50,000
Purchased a short sale, fixed it up and rented it to the same family since 2013. Getting it ready to sell in Sept 2020. Hoping to hold funds for a year and re-invest after corona settles out and possibly leverage more with the market possibly dropping.
What made you interested in investing in this type of deal?
I loved the cute old Victorian style, which is the wrong reason to invest ;)
How did you find this deal and how did you negotiate it?
Short Sale through the MLS and my Real Estate Agent.
How did you finance this deal?
Cash
How did you add value to the deal?
My husband is a contractor and we fixed it up, re-arranged and put in a functional kitchen and bathroom.
What was the outcome?
Long term renter which resulted in the need for a lot of work and repairs. Hopefully selling October 2020.
Lessons learned? Challenges?
Buy low. Don't buy and old house because it is beautiful or has character. Hire a property manger to keep your emotions out of it and charge market rent. Don't keep the rent low just because you feel bad for the tenants. Tenants will take charity and kindness but when it comes to the end, it will be messy no matter what and your kindness will not be remembered or recognized. Treat your business like a business, hire a property manager. Don't fall in love with a claw foot tub, not practical.
