Amazing cash flow for a SFR - drives market rent by 300%
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $192,000
Cash invested: $50,000
THEEE cash cow of my portfolio. MTR. Fully renovated and more to come. Looking to build 3rd full bath and adding egress window to classify property as 4/3. This equates to a $50k increase in value in this specific neighborhood. Highly desirable neighborhood due to school district and location. Quick access to highways and high walkability score. Large lot and very unique home in Camp Hill.
What made you interested in investing in this type of deal?
Best school district. Amazing location. Easy access to all amenities and conveniences. Large lot and unique property.
How did you find this deal and how did you negotiate it?
Found through drive by in targeted neighborhood. Negotiated with investor friendly Realtor.
How did you finance this deal?
FHA
How did you add value to the deal?
House needed complete renovations. Added value was the great room that was already there. House was renovated true to the Cape Cod style. All real hardwood 2 1/4 planks throughout. All new mechanicals. Large deck and very large enclosed fenced in yard. Very tall pine trees surrounding the property creating a very private feel yet in the heart of everything. Sits on highest lot so no one can see inside the house. Highest rated school district.
What was the outcome?
Driving market rent by 300%. Cash cow with ZERO vacancies through our marketing strategies.
Lessons learned? Challenges?
Started out as a LT rental. Learned to not trust tenants no matter their income class. This home was rented to executiv income requirement well above 6 figures. One of our high end tenants decided to leave early and turned down the thermostat where it froze the pipes and totally destroyed the property. House sat vacant for 2 year. 20/20 hindsight, I would have taken a loan out to renovate the property ASAP. Now a highly desirable home with daily offers to buy.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Worked with RE agent that was well versed in the neighborhood. Best investment ever.
