My Second Completed Rental

[Tray Spelling]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,000
Cash invested: $76,050

This deal was a rollercoaster that taught me more than any book or podcast ever could.

I found this VA foreclosure on the MLS listed around $50K. It was a 3 bed, 1 bath on two oversized corner lots just off busy Stateline Avenue—great location with strong visibility and potential. It had a massive carport with an attached shed, and the moment I saw it, I had a vision: turn that unused storage space into a master bedroom and ensuite bath, then connect it to the main house by opening up the kitchen wall. I also converted one of the original bedrooms into a second full bathroom. When all was said and done, I'd transformed this house into a 3 bed, 3 bath 2,100 sq ft layout—completely reimagined from its original form.

But the transformation didn’t come without battle scars.

After a nightmare first investment (where I had to flip just to escape), I was already on the hunt for a new contractor. I ended up hiring someone who seemed hungry for the work and promised to deliver. Things started okay, but it quickly became clear that the money was running out faster than the progress. He gave excuses, I gave chances—and even pulled money from my own pocket outside the budget to keep it going. Eventually, he ghosted, citing personal issues and shutting down his business.

From there, I hired a jack-of-all-trades handyman to finish it up. While he had just enough skill to get the job done, he came with every possible headache: poor communication, inconsistent work pace, and even started sleeping at the property. His presence attracted some chaotic energy—including an incident where his old partner sabotaged the house and flooded the laundry and kitchen.

What should’ve been a 3-month rehab turned into a full year.

Mentally exhausted, I initially decided to sell it. But when I tested the rental market and got serious interest at $1,850/month (top-end for the area), I pivoted. A solid couple signed on, and despite the typical "newly rehabbed house" issues—plumbing, appliances, HVAC sizing—they stuck with me, and they're still there today.

That deal pushed me to find a real, professional contractor—someone I now work with on all my projects. It also helped me solidify the type of investor I want to be: someone who solves problems, finishes what they start, and keeps growing.

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

I had just closed on my first investment property when I came across this one. I wasn’t very cash-rich at the time, so the low purchase price caught my eye. What really sealed it for me, though, was the opportunity to add significant square footage by converting the existing storage area into livable space. It felt like a high-upside project where I could create a lot of value with some vision and effort.

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

I found this deal while scrolling the MLS. After a bit of research, I saw it had previously failed to sell and was a VA foreclosure, which signaled some potential leverage. I ran my numbers, made an offer at asking—or just slightly below—and to my surprise, they accepted my first offer with no counter. It was a straightforward acquisition, which helped me move quickly.

How did you finance this deal?

I financed this deal through a local credit union I had a long-standing relationship with. I think they took a bit of a chance on me, considering my first property was still mid-rehab and far from stabilized. But because of our prior business history and my clear plan for this second project, they moved forward with the loan. That relationship definitely helped me keep momentum early on in my investing journey.

How did you add value to the deal?

I added major value by converting an attached storage room into a master suite, turning a 3/1 into a 3/3. The entire property underwent a full gut rehab, including layout changes, updated systems, and modern finishes. It grew to over 2,100 sq ft and became one of the nicest homes in the area.

What was the outcome?

What started as a plan to flip turned into a rental after strong interest at top-market rent. I leased it for $1,850/month to great tenants who are still there today. Despite all the headaches, the property now cash flows and helped me level up as an investor.

Lessons learned? Challenges?

Biggest lesson: trust your gut with contractors. I ignored red flags and it cost me time and money. I had to fire my GC mid-project, finish with a less-than-ideal handyman, and deal with delays, flooding, and tenant repair issues. What should’ve been a 3-month project turned into a year. But I pushed through, found a reliable contractor for future deals, and learned how to manage chaos without quitting. This deal made me a sharper, tougher investor.