Updated about 4 years ago on .
Eastpointe Michigan Rental
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $35,000
Cash invested: $12,000
I purchased this distressed property in 2018 from the bank. Offered 10k less then asking was turned down and then contacted a week later and the deal went through!
Did most of the renovation myself except for a new furnace/ac/chimney liner as well as an upgraded 100 amp electrical service/meter/offset riser. I did some drywall work/insulation/re finished hard wood flooring/installed laminate click and luxury vinyl/removed and replaced kitchen cabinets and changed layout of kitchen cabinetry/re plumbed house in pex. Painted home/new ceiling lights throughout and some new interior doors. Fixed some damaged siding.
In the 4 years I've owned this home I have only had to snake the main drain 2x. Was able to be done from outside through a cleanout.
What made you interested in investing in this type of deal?
It was a no brainer that this was going to be a great investment. I was buying a solid house in a nice neighborhood for 35k.
How did you find this deal and how did you negotiate it?
Found it on zillow. Negotiated through a friend agent before I became an agent myself. He made my offer, they said no, then came back and said yes.
How did you finance this deal?
Cash.
How did you add value to the deal?
Renovated the interior and added landscaping.
What was the outcome?
A great house now valued at 125k. First began renting it for 1000 a month then three years later when the tenant moved out I relisted the home for 1,300 and found a great tenant within a month.
Lessons learned? Challenges?
As much as I like the neighborhood I don't like the neighbors on either side of the home. They are disruptive/obnoxious. One of the neighboring properties is a multi family home that attracts low quality tenants. There was a slight concern about theft during the renovation but fortunately all went well.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, but I'm a realtor now so I'd recommend me instead! Always on the lookout for good deals.
