First Completed Rental Project

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Investment Info:

Single-family residence buy & hold investment in Texarkana.

Purchase price: $44,000
Cash invested: $34,000

I picked this property up as a bank-owned foreclosure directly from their website, assuming it wouldn’t sell at auction. I purchased it for $44,000, and after appraisal at $154,000, I knew I had a solid deal. This property allowed me to do a cash-out refi, replenishing the money I’d poured into my first two challenging deals. It gave me breathing room and was the pivot point that truly launched my investing journey.

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

After two tough deals—one I had to sell at a loss and another that nearly went off the rails—I was ready for a clean slate. I had a new lender, a new contractor, and was looking to rebuild my momentum. When I saw this brick VA foreclosure hit the MLS in my buy box, it felt like a breath of fresh air. The layout had potential, the price was right, and I saw an opportunity to bounce back, apply what I'd learned, and finally have a smoother project from start to finish.

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

I found this deal by checking local credit union repos and foreclosures regularly. It popped up from a small credit union and fit my buy box perfectly. I offered $40K, knowing it was underpriced, and after some light back-and-forth, we settled at $44K. There wasn't heavy competition since it hadn't hit the MLS yet, so I was able to lock it up quickly. It was the clean start I needed after two rough deals—with a new lender and contractor in place.

How did you finance this deal?

This was my first financed deal with the local bank that's now my go-to lender. I had just dissolved my first LLC with a business partner and formed a new sole-member company to start fresh. The bank took a chance on me based on my plan and persistence, even though I was coming off two tough projects. That relationship has grown into a solid lending partnership that's helped me scale my portfolio since.

How did you add value to the deal?

I did a full remodel—added central heat and air, built a dedicated laundry room, repainted the exterior for curb appeal, and completely changed the layout. Originally, it had a chopped-up floor plan where you had to walk through bedrooms to access other rooms, including the kitchen. I reconfigured the space for proper flow, added a bathroom, and turned it into a functional, modern 3 bed, 2 bath. The transformation made it one of the nicest homes in the area.

What was the outcome?

I initially planned to rent the property for $1,200 but was advised by a fellow investor to aim higher. I listed it at $1,500 and quickly found a retired couple receiving monthly benefits who loved the home. They had a trained dog and were a perfect fit. The tenants have been reliable and are still renting the property to this day, providing steady income and peace of mind. This outcome exceeded my initial expectations.

Lessons learned? Challenges?

One big lesson was never to overlook critical systems—I forgot to get the heat and furnace working before listing, so I showed the property with frosted windows and made excuses to buyers. Thankfully, I got the heat fixed before tenants moved in. This taught me to plan every detail carefully and not rush the process. It also reinforced the importance of thorough inspections and prep to avoid surprises during showings or tenancy.