Updated over 1 year ago on . Most recent reply
Our first home turned "rental" not doing it right yet.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $125,000
Older home, needs freshened up. Needs a roof, siding, basement, kitchen, bathrooms, bedrooms, etc. Appraised less than a year ago for $160,000.
What made you interested in investing in this type of deal?
We had to upgrade to something bigger for our family and my buddy's family needed a place to live.
How did you find this deal and how did you negotiate it?
It was a Bank foreclosure in 2005, bought it with 2 mortgages out of the gate, a first and a second mortgage, because we were not creditworthy of a home.
How did you finance this deal?
The lender did all the work, I don't remember doing much of anything, they made it work.
How did you add value to the deal?
I haven't yet, it needs work.
What was the outcome?
Not good. It's a work in progress. I want it to be good but I probably need to sell it and start fresh.
Lessons learned? Challenges?
Don't rent to friends and family, as a favor, until you have all the information and a clue as to how to run a rental property.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not this time.