Updated about 3 years ago on . Most recent reply
Second Rental Property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $454,000
Cash invested: $22,700
3 bed 2.5 bath 2 story home with unfinished basement
What made you interested in investing in this type of deal?
We wanted a nicer home that would attract (hopefully) better tenants at a higher price point.
How did you find this deal and how did you negotiate it?
We saw the home while driving around our town. This was new build so we had little negotiating power. We offered full price plus $5k and asked for $5k credit towards closing costs.
How did you finance this deal?
5% down through a local credit union
How did you add value to the deal?
House came with 2 heaters, one for upstairs and one for lower levels. Only had A/C on top floor that was supposed to "trickle down" to lower level. We added a second A/C unit to make it a true dual-zone heating and A/C home. Added lighting and electrical outlet to a bonus room under the stairs.
What was the outcome?
Cash flowing property with increasing equity
Lessons learned? Challenges?
Different builder with different building issues and much more difficult to get them to warranty their work. We had to constantly call, text and email about each issue until it got handled.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Kelley Spight with Elevations Credit Union is amazing to work with. She is great with communication and always gets back to us with answers to our questions in a very timely fashion. Highly recommend her to everyone. Plus, they have excellent interest rates compared with banks.
Nicki Schreibvogel is a great real estate agent who works hard to find the house that fits your needs. She and her husband are investors who know the business well.
