Single Family Property

[Jacob Martin]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $250,000
Cash invested: $60,000

Single-family home, originally 3 bed 1.5 bath.

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

I saw an opportunity to implement the BRRRR method here. The combination of super-low interest rates made it appealing.

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

The realtor brought it to me, I knew the owner, and he gave me his best price.

How did you finance this deal?

FHA Loan

How did you add value to the deal?

We have done a complete property renovation, including removing a 24 wall to open up space and changed a space to add a 4th bedroom and a full second bathroom. The property now has a full master suite with a walk-in closet. We also have plans to add curb appeal next spring.

What was the outcome?

The property ended up costing far more in rehab than I originally anticipated. Because of this we began house hacking and built a mother-in-law suite for ourselves and rented the majority of the home out to cover the mortgage.

Lessons learned? Challenges?

I learned a lot about renting due to having tenants in the property while we renovated spaces. I learned a lot about where to find a lease and what to include in one as well as little details such as whether to allow pets in the home or not. One challenge I faced was the lack of communication from the tenant. I understand better now the necessity of doing occasional walk-throughs on rental properties.