1002 Valerie Ct
Investment Info:
Single-family residence buy & hold investment in Moscow.
Purchase price: $219,000
Cash invested: $219,000
Found another dump in a great location. Purchased in cash far below listing price. I'll be doing an extensive full gut remodel which will include an expansion of living space by doing a partial garage conversion making this 2 bed 2 bath SFH a 3 bed 3 bath SFH, adding about 300sq feet of living space. This will eventually become another STR for us. With this house being bought in full the plan is to get a HELOC or HEL to purchase another property when finished.
What made you interested in investing in this type of deal?
As a GC, able to perform all the work myself, I saw massive value add potential with this property. We sent an all cash offer for far below listing which was accepted.
How did you find this deal and how did you negotiate it?
MLS
How did you finance this deal?
Paid in "cash" using funds from a HELOC obtained on a previously rehabbed property.
How did you add value to the deal?
I will be doing a complete gut, demo to studs to include replacing the floors. I'll be doing a partial garage conversion and will add a bedroom, bathroom, and large laundry/storage room which will increase the living space about 300 sq ft.
What was the outcome?
Just starting
Lessons learned? Challenges?
Cash is fast.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. Traci Hacker owner of At Home Real Estate
@Randall Brooks - Congrats! Sounds like a good one. How much do you plan on putting into it? What will it be worth once completed? What sort of revenue will you get from the STR once stabalized?
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@Andrew Freed I did a material estimate and on the high side I expect to put around 38k into the rehab. All in I expect to be under 260k and with comparable comps from this area I'd hope to appraise in the 330-350k range once finished. Neighbors house just listed for 380k and one block over a house just listed for 417k. With the partial garage conversion I'll have more living space than the house listed at 380k which is a bit outdated itself.
As far as projected STR income airdna says this would produce 60k/yr. Airdna has been fairly accurate for our other STR which is averaging close to 3k/month this year with the peak STR season being fall as we're located near two universities (football season). This will have one more bed and bath which will bring a higher nightly rate but I'd be happy if it performed as well as our current STR.
Awesome! What is your current game plan regarding financing? Will you maintain the HELOC, refi once you're done with projects? Or something else?
Hey @Jordan Clemans. Great to see another Moscow local on here. As of right now the plan is to get a home equity loan once rehab is complete and pay off HELOC. Which would put us in a position again to use the HELOC for another project.
However... My wife is falling in love with the idea of living in the new house. We currently live in an owner occupied duplex we just finished a massive rehab on. Currently STR'ing the other side.... We may declare this new house as our primary and begin renting the side we are currently living in. Financial plan would stay the same if we go this route as we will be adding a rental either way.