Our first single-family investment property

[Tamara Dioubate]

Investment Info:

Single-family residence buy & hold investment in Marrero.

Purchase price: $119,000
Cash invested: $4,000

All brick 3 bedroom, 2 bath home in a quiet, established neighborhood of Barataria Estates. Nice fenced yard. No carpet.
Type: Single Family
Parking: Garage - Attached, Covered
Lot: 4,804 sqft
Bedrooms and bathrooms
• Bedrooms: 3
• Bathrooms: 2
• Full bathrooms: 2
Heating
• Heating features: Forced air
Other interior features
• Total interior livable area: 1,172 sq ft
Heating/ Air Conditioning: Central

What made you interested in investing in this type of deal?

The house needed a lot of TLC. I saw the potential it had so I could not pass up the chance to make it a nice home for a family.

How did you find this deal and how did you negotiate it?

I found the property on the MLS and worked with an agent. I had my contractor look at it first to give me an idea of the cost for renovations. Of course, using the BP calculator made everything much easier.

How did you finance this deal?

Traditional financing with a bank. Initially we had a renovation loan but didn't have to utilize all funds that were allocated. We opted for 6 month interest free with a Home Depot card to purchase all materials.

How did you add value to the deal?

The seller was an older person that had a tenant who neglected the property. It was previously owned by another family member and the seller had no interest in dealing with tenants. We informed the seller of our plans for the property of how we would fully remodel the kitchen and bathrooms. This made the deal a win-win for both parties.

What was the outcome?

We were able to purchase the property and renovation it as stated. The renovations were completed within 30 days so we were able to place a tenant in the property shortly thereafter.

Lessons learned? Challenges?

It was a great experience. We are currently saving cash to purchase a multi-family property before the end of 2022.