Updated over 5 years ago on . Most recent reply
Rented, Bought, Lived in, Turned into Rental.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $145,000
Cash invested: $25,000
This was a condo purchase with my wife and I. Our intent from the beginning was to purchase and turn it into a rental when we moved on from it.
What made you interested in investing in this type of deal?
It was our first home purchase. We weren't picky, just wanted to get started.
How did you find this deal and how did you negotiate it?
We had already lived there for almost 4 years (renting) and the owners were putting it up for sale. It was perfect timing (low market) and we already lived there so we wouldn't have needed to move. BONUS!!
How did you finance this deal?
Bank of Hawaii (local bank). Michael Libertini, who was the branch manager at the time, walked us through every bit of it. He is quite savvy with real estate himself and so it turned out to be a great contact. Still keep in contact with him and alway trust his insight.
How did you add value to the deal?
We remodeled the bathroom 2 years after the purchase and remodeled the kitchen 6 months before turning it into a rental.
What was the outcome?
We are able to cashflow the unit and that part is a success. Location is great since it's across the street from a military base and that has been wonderful to keep the unit rented.
Lessons learned? Challenges?
We probably went a little overboard on the remodel, given the area and it being a rental. We are still paying for the remodel and it has impacted the overall cashflow.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Although, he doesn't work for Bank of Hawaii anymore, Michael Libertini was pivotal through the life of owning this property and our perspective to real estate.
