My second rental property
Investment Info:
Single-family residence buy & hold investment in Georgetown.
Purchase price: $175,900
Cash invested: $44,000
This single family home is a 3 bed, 2.5 bath house with almost 1600 sqft on an unfinished basement.
What made you interested in investing in this type of deal?
Since I was having success with my first rental property, I decided to do a second. This house is on a full unfinished basement that I knew would be attractive to families who were moving to the area and needed ample storage.
How did you find this deal and how did you negotiate it?
This house was listed on the MLS as a FSBO. I used a realtor to negotiate directly with the seller.
How did you finance this deal?
30 year fixed mortgage and 25% down.
How did you add value to the deal?
Since I have lived in the area for years, I know that this section of the neighborhood was built as a step-above the other builder housing tracts in the area. The builder used higher end materials compared to other builders. During the recession the builder sold out to another builder. Now all of the houses in the neighborhood are valued the same, but I know this house is better than the rest.
What was the outcome?
The original tenants are still in the property. No late payments and all is well.
Lessons learned? Challenges?
I replaced the carpet when I purchased the house. The tenants have dogs, and I can see that the carpet will probably need to be replaced when they move out. I would have installed LVP flooring instead of carpet if I was to do it again.
