Updated about 5 years ago on . Most recent reply
Home Town Rental Property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $270,000
Cash invested: $79000
Two Bedroom, two bath, double car garage in a great neighborhood. Home was a time capsule for 1980 but very clean. We just went in and freshened it up with a new kitchen and bathroom, flooring and paint.
What made you interested in investing in this type of deal?
To date I hadn't held a property locally. My only rentals have been out of state. This was a great below market property and knew in this neighborhood it would rent immediately. Rehab was quick, only 4 to 5 weeks. I was excited to do a property that was so clean and well cared for as opposed to my last flip which was a hoarder house and had caught on fire.
How did you find this deal and how did you negotiate it?
I found it from an agent in our Real Estate office.
How did you finance this deal?
Traditional financing.
How did you add value to the deal?
Upgraded the kitchen, bathrooms, flooring, paint, removed a fireplace, took out a half wall in the kitchen, updated with can light and fixtures.
What was the outcome?
Rented on a one year lease. House payment $1150 PITI and Rent is $1850
Lessons learned? Challenges?
It is best to freshen and make the interior current to attract good renters even if the place is super clean. Outdated looks can attract a renter that may not value upkeep.
