Fell into owning a rental
Investment Info:
Single-family residence buy & hold investment in Holly Ridge.
Purchase price: $193,000
Cash invested: $24,000
This was a home I purchased while I was in the military. When it came time to rotate and move to another state, I was underwater by about 24k. So selling wasn't an option.
I have refinanced three times since then, once into a better rate in 2012 while I still lived there, once to take it from a VA loan to an investment property loan, and once again to get a better rate after making personal connections with lenders.
What made you interested in investing in this type of deal?
I was unable to sell and renting has been the best 'forced' decision ever.
How did you find this deal and how did you negotiate it?
I built this house while the neighborhood was in development.
How did you finance this deal?
2010 - Conventional VA loan, 30yr/fr
2012 - Refinanced, conventional VA loan, 30yr/fr
2020 - Refinanced to an investment property, 30 yr/fr
How did you add value to the deal?
-Wood floors
-Marble counter tops
-High quality backsplash tiles
-Enlarged the back patio
-6' wooden fenced back yard
What was the outcome?
Value of house over the years -
2010 - bought at 193k
area went down in value, house appraised at 170k
2019 - House valued at 205k
2020 - House valued at 223k
Lessons learned? Challenges?
I learned how to speak with a property manager and understand their needs and how to convey my needs.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Property manager - SeaShore realty for long term and short term rentals.
