Farmhouse Investment Property, Vacation Rental, Guest House

[Kathy Scott]

Investment Info:

Single-family residence buy & hold investment in College Station.

Purchase price: $136,000
Cash invested: $50,000

This home boasts of southern charm! Shiplap walls are featured in all the living/dining area, kitchen, and all 3 bedrooms. The tin ceiling in the kitchen, leathered granite countertops, farmhouse sink, new cabinets, and stainless appliances give the home a farmhouse charm and modern functionality.

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

The house is located to another property that I own. It was in seriously poor condition and needed remodeling. I LOVE redesigning homes and seeing the increase in value. This property purchase was a great investment because, remodeling improved the value of the home AND the neighboring property that I own. I furnished the home and turned it into a vacation rental. As a vacation rental it brings double the long term rental rate. Great transition as in income producing property and guest house.

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

I learned about the listing through another broker. The seller had the property listed above what I thought it would bring. I asked the agent to let me know about any offers received. The seller reduced the sales price and received an offer, at which point I made my offer and bought the property.

How did you add value to the deal?

I had the home completely reconstructed and added a bathroom. Since the home is a farmhouse, I completely went with the farmhouse style in reconstruction. I used shiplap throughout all of the rooms, new board and bat siding was installed, farmhouse sinks, all things farmhouse went into this redo.

Adding the bathroom and remodeling the kitchen were two of the biggest improvements to the home. New windows, siding, air conditioning, wiring, and plumbing were also added.

What was the outcome?

Fabulous rental return on the investment. The home doubles as a vacation rental and guest house.