Rental property that i basically rented to own.

[Joe Pete]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $309,000
Cash invested: $25,000

My first rental purchased with equity from my first home.

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

The deal presented an exceptional opportunity that was difficult to ignore, given the neighborhood's promising growth potential and the seller's willingness to provide financing. The combination of these factors made it an attractive investment.

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

I rented the property and then subleased it for 7-8 years prior to this purchase. During that time, I made two offers, but I didn't have the necessary down payment. Eventually, I accessed the equity from my first home. At that time, my mother resided at my first home, while my son and I, along with his mother, were in this property.

How did you finance this deal?

The financing was structured as seller financing, with an initial down payment of 20%.

How did you add value to the deal?

Remodeled after the last renter moved in. This included a complete overhaul:

* Top-to-bottom texture and paint
* New cabinets
* Kitchen countertops
* Backsplash
* Redesigned garden with new sod
* New fixtures
* New outlets
* New trim
* New switches
* New hardware throughout (door backers, shower rods, vents, closet hardware, etc.).

What was the outcome?

The property is currently leased to a company housing workers in town for a specific project. The lease agreement is for one year, and the rental rate is among the highest in the area.

Lessons learned? Challenges?

The remodeling process, electrical work, carpentry, cabinet installation, and kitchen renovations provided extensive learning opportunities. Undertaking all tasks independently while managing the property for a year also yielded insights into:

* Labor-intensive projects
* The physical and emotional toll of renovations
* Financial constraints
* Project timelines and management
* Interior design principles
* Plumbing systems
* Ventilation systems
* Budgetary planning

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

none