Purchase Date: 12/19
The Deal:
We were looking to grow our portfolio when we found an owner with multiple properties he wanted to move. The owner wasn’t interested in any sort of creative or seller financing options, and at the time we were very limited on cash, however, this property really stuck out to us. Originally the owner was asking for $55,000 for the property, however, after a lot of negotiation we were able to get him down to $48,000. This was our first property in Mishawaka and looked like a steal! This house was a 3 bedroom 1 bath with a decent basement and a garage with a fenced-in back yard!
How Did We Find The Property?
We found this property originally from a local wholesaler. Eventually, we ended up negotiating directly with the owner of the property.
How Did We Fund The Property?
We were very confident in our ability to get bank financing, the local credit union had already pre-approved us, and we were going to use a commercial loan for the property. Unfortunately, it didn’t end up this way. The credit union eventually did not approve us for the loan on the commercial side, however, after almost 3 months we were able to get the mortgage approved in our personal name. The loan was a 5-year balloon, with a 30-year amortization schedule, and the interest rate was 5.5%. This means that in 5 years I would either have to get it approved for another 5 years from the credit union, or I would have to pay it off through some other refinance.
How Did We Fix The Property?
When we purchased the property there was already a tenant living there. They were paying $900 per month and stayed in the house from the date we bought the property until March of 2022. Once the tenant moved out we went through and patched all of the walls (extensive nails, screws, and holes in walls).
Before Video:
Unfortunately, we did not get a before rehab video in time.
Update List:
- All new paint
- All new vinyl plank floors
- New kitchen countertop
- Painted all the cabinets and added new hardware
- A new lights package throughout the house
- New toilet and fan in the bathroom
- Smoke detectors, carbon monoxide detectors, and light bulbs throughout
- All new light switches, outlets, GFI’s, and covers
- Lots of trash pickup in the yard
- Trimmed all the trees and overgrowth throughout the property