Our biggest Mid-Term yet

[Evan Kline]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $265,000
Cash invested: $43,000

We came across this house on market. I knew it was under listed by quite a bit, purchased for $265,000, during DD it appraised for $325,000.

We moved in and did a small kitchen remodel, then furnished the property and listed it as a mid-term rental.

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

Initially the equity we were walking into

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

This was sitting on the MLS for 8 days (which at the time was twice as long as normal). It was priced at $285k, which was already underlisted. We came in and offered $265k, they countered and asked for a higher price and higher DD money. We accepted the higher DD (since we knew we would close) but said we were firm on price. They accepted.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

We did a light rehab on the kitchen: painted cabinets, new hardware, new backsplash, new countertop. Otherwise the house was in pretty good shape.

We also furnished the home for use as a mid-term rental.

What was the outcome?

House is 100% occupied and is cashflowing about $800/month for us.

Lessons learned? Challenges?

Bigger properties work for mid-term rentals. We tried to split the house into two "units" and rent them individually but that didn't work as well.