Friendly Neighbors

When opportunities come completely by happenstance.
Strategy:
BRRRR

About the Property

friendly-neighbors-clarksvilleTN

About the Deal

Why I liked it

Because I literally own the house next door, and this one seemed to come by fate.

My property manager was doing a walk through to prep for rehab and happened to be doing it at the same time as this property’s agent was doing a walk through to prepare to list it and it turned out they knew each other so they sent it straight to me first to see if I’d be interested.

I had a pretty good idea of the ARV since I’d just gotten an appraisal back next door. Plus, my contractor lives next door to that. So if he wants good neighbors and to raise his own property value then he better do a good job!

Deal structure

Hard money loan with the plan to refinance into a non-conventional long-term loan in 3-6 months.

Deal outcome

TBD, undergoing rehab.

Projected Numbers

Purchase: $90,000
Rehab: $30,000
ARV: $155,000
Rent: $1,200-$1,300

Actual numbers

Purchase: $90,000
Rehab: TBD
ARV: TBD
Rent: TBD

Deal Outcome

TBD!

Lessons Learned

1. If one house has foundation issues due to the way it was constructed, there’s a good chance the house next door also does.

2. It’s really important to know the most common issues with homes in particular areas. They can be due to anything from climate, age of most homes (either old in general or if there was a “boom” in growth during a time when construction standards were sub-par), soil/terrain, etc.

3. My next door neighbor is the man.