LTR in Escondido, CA

[Ryan Prange]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $698,000
Cash invested: $275,000

3/1 main house and 1/1 ADU for total of 1750sqf. Currently leased for $4200/mo resulting in -$200/mo in cash flow. The goal is to refinance before the end of the year to ideally get a lower rate and possibly some cash out to pay back HELOC

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

We were looking for a long term buy and hold and rent in our community to create long term cash flow

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

I found it on redfin and messaged my realtor about it. It had long term tenants and seeing the property was difficult

How did you finance this deal?

conventional financing and used our HELOC for the down payment and renovations.

How did you add value to the deal?

we fully renovated the ADU and the main house. we also added the ADU to the tax role bumping the sqf to 1750 from 1150 overnight.

What was the outcome?

the renovations are done, we have long term renters in there now. hoping to refinance soon to get a lower rate and have the property actually cashflow

Lessons learned? Challenges?

the renovation was on schedule but i really had to push the contractor. i think i burned a bridge with them. i also promised the unit to the new tenants but needed 5 more days which resulted in a clunky move-in and having to credit them rent. Next time i will allow more time for unknowns. the house needed to be rewired and many other things needed to be done

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Home Loan Collective, Mark Robertson and his team