Why I invest in class D properties

After a cold winter a few years ago I was left with the decision looking  for another job to supplement my income so my company didn't fail, or lay my two workers off so I could remain self-employed. I decided to give my contract to another GC (general contractor) and close down shop. It was one of the worst years of my life because of the loss of my company and a failing engagement. 

Fast forward a year, I finding my ambition again. However, in the process I realized a few mistakes that I made. The first and largest mistake that I recognized was that I was trying to make it in a market that was flooded with other competitors that at times had more resources, work force, and experience. To over come this I came up with a solution; I would buy the house and then I would not only secure the contracts I want, but I would  have free decision making ability for all moving parts. My next problem was I was broke, homeless, and the only transportation I had was my motorcycle.  

We arrive to a few months ago, I found another property that fit my price range and the foundation and overall structure of the house is in good condition.  I had found a few houses in the past but I had either been out bid or found one or more red flags before closing. This deal seemed like it was going to also be one of those cases, but I have found that you simply must keep trying and continue to do your doe-diligence. The property came back all clear so I made an offer of  2000 dollars (yes, you read that right, no not in Detroit). It was a foreclose property in a rust belt city, less than an hour from a major city. It has public transportation, moderate to good schools, and is in a low crime area. We closed on the property on Feb. 24th and since then I have started the renovation. Before I close out this weeks post I will skim the ruff basics of the deal.

So here's the ruff and skinny:

Total acquisition cost was $3,200 

Projected repair cost is $26,000

Projected ARV medium is currently around $70,000.

The plan is to Buy, Repair, Rent, Refinance 

(Thanks for the great plan Brandon, "The Book on Rental Property Investing" was the first of many that I found that really gave my ideas a definitive direction.)