little old ladies & drunk drivers - lessons learned

[Shuff Mauldin]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Cash invested: $15,000
Sale price: $150,000

solid 3/1 with long term current tenant below market rents. 1% deal at purchase on a house with lower than normal cap ex potential.

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

I was actively looking for value-add opportunities in Ellisville. I liked the idea of buying older single-family rentals in established neighborhoods where tenants tended to stay long term.

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

I was originally looking at another property down the street and simply asked the seller, “Do you have any others you’d consider selling?” He mentioned this house — and made a face when describing the tenant, calling her “a little old lady with an attitude.” He was willing to let it go for $75k, which I was happy to pay without much back and forth. What looked like a potential tenant headache turned out to be doable— she paid on time, took care of the house, and rarely called with issues.

How did you finance this deal?

I initially purchased the property in my name through fannie but decided to pay it off in short order. The rate and 30 year am were not enough to overcome the amount of capital I had to keep in escrow so I paid it off.

How did you add value to the deal?

The value add was minimal during the hold period. The home was already in good enough condition and the tenant was happy. Over time I spent around $10,000 on upkeep and small improvements. Ironically, the biggest “value add” came later — when a drunk driver ran through the living room. Insurance covered repairs and loss of income, and the remodel brought the home up to a higher standard, supporting the strong resale value.

What was the outcome?

I sold the property in May 2025 for $150,000. Over seven years, the property generated about $64,500 in cashflow and doubled in value. After accounting for purchase price, maintenance, and the sale, the deal produced $125,000 in profit, a 2.47x equity multiple, 9% average cash-on-cash return, and an 18.7% IRR.

Lessons learned? Challenges?

I don’t have the heart to raise the rent on a little old lady — but not raising rent for 5+ years creates a problem. When it’s finally time to adjust, the increase feels too aggressive for both parties.

Rent bumps are essential to keeping things sustainable, even with great tenants.

Insurance matters more than people think — “loss of income,” insured-to-value, and replacement cost coverage were big lessons for me.

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

Lee Boyette