My Second Completed Rental

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Investment Info:

Single-family residence buy & hold investment.

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

Found this VA foreclosure on MLS—a 3 bed, 1 bath on two large corner lots. It had a carport with a storage shed I converted into a master suite with bath, turning it into a 3 bed, 3 bath and expanding to about 2,100 sq ft. It was a full gut rehab with many challenges, including contractor issues and delays that stretched the project from 3 months to a year. I considered selling but ended up renting it at top market rent. This deal taught me resilience and shaped my investing approach.

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.