Investment Info:

Single-family residence buy & hold investment in Riverdale.

Purchase price: $210,000
Cash invested: $30,000

Buy and hold used as short term rental property. Bought undervalued (market value of 265k); refinanced about 1 year later to contribute to next property purchase.

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

The fact that this property was undervalue and that I had the capital to put a 20% down payment, so there would be plenty of room to pull of equity to purchase another property.

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

I found this property on the MLS. I looked at the property's price per square foot and saw how much lower it was compard to similar homes. I also liked the square footage along with number of bedrooms, which sparked the seed of coliving as an investment strategy.

How did you finance this deal?

20% Down Conventional Loan

How did you add value to the deal?

Repaired back deck, replaced air condenser, drywall, interior and exterior paint, roof insulation, door repairs, furnishing, and running as a colving short term rental.

What was the outcome?

Property running as a successful co-living short term rental since 2023, netting $1,000 to $1,500 in cash flow. Was able to pull out 20k in equity via cash-out refinance to acquire the next property!

Lessons learned? Challenges?

Learned a TON about the nuances involved in refinancing (reserves, leases on current properties, DTI, LTV limits, and the best part? Closing costs!).

I learned about how improving control over utility bills and addressing deferred maintenance can improve cash flow in the mid to long term, though immediate financial hit is felt. This sparked the coliving strategy as a piece of my invetment jouney; over the moon on what I learned!