First Home and First Rental Property!
Investment Info:
Single-family residence buy & hold investment in Ontario.
Purchase price: $410,000
Cash invested: $44,280
4 bed 2 bath
1474 sq ft
7142 sq ft lot
built 1980
What made you interested in investing in this type of deal?
I originally bought this SFR to live in and raise my family.
How did you find this deal and how did you negotiate it?
I found it through a real estate agent. I didn’t do much negotiating at all, which I regret!
How did you finance this deal?
VA Home Loan
How did you add value to the deal?
Completely remodeled and opened up living area
Completely remodeled and rearranged the Kitchen.
Added recessed lighting
Installed all new appliances
Remodeled master bath
Replaced HVAC Unit
Replaced garage door opener
Landscaped yard
What was the outcome?
The outcome was okay. I am currently in the process of refinancing to recover most of the cash I invested. I am currently renting it out, and making $100 cash flow a month. I could have focused the rehab on market trends and functionality of the home instead of my likings. This would have brought the value up even more and I would have been able to get more of my cash invested returned.
Lessons learned? Challenges?
Don’t go too fancy with the remodel.
Stick to market trends and changes that will improve home value. Steer clear of changes that are costly and don’t increase value much.
Do some negotiating next time!
