Live in rehab turned Rental
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $158,000
Cash invested: $20,000
Buy and Hold. This was our first investment. Many more to come.
What made you interested in investing in this type of deal?
Down payment assistance through our county. Good airbnb rental as well as a long term rental.
How did you find this deal and how did you negotiate it?
MLS, offered under appraisal value.
How did you finance this deal?
Conventional 30 year. 20% down including down payment assistance.
How did you add value to the deal?
Living in this home gave access to a 4.5% interest rate in 2016. Wasn't planning on turning it into an investment but it turned out.
What was the outcome?
So far so good. Hanging it onto it indefinitely.
Lessons learned? Challenges?
Landscaping and lawn care needs to be included in our lease for this particular property. The tenants do not normally do a good job taking care of the lawn. I recommend putting that in the lease if the lawn would be a problem for the neighbors and tenants. This home is on a slope and has a mature landscaping.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I would recommend Jason Coleman as a realtor ; ) I used a community bank that is no longer in business haha. Reach out to me for other local lenders in the area. I have a preferred list of vendors I use.