MLS for a *HOT* Property…ROI Still Pending

[Jennifer M Superales]

Investment Info:

Single-family residence buy & hold investment in Weatherford.

Purchase price: $221,000
Cash invested: $18,000

This represents our first investment property and, in hindsight, we didn’t exactly apply any savvy strategy when securing the deal in a very competitive market. In addition to down money, we are over $30K into basic repairs and some updates/upgrades as a result in increased expenses for scarce materials and labor. We’ve learned quickly electrical and duct work in a 1940 built home will eat a budget fast…At least the exterior reflects a vast improvement.

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

We wanted a short-term rental that was a unique property, in a good location, that would appeal to visitors for years to come. As the area continues to grow and focus transitions toward improving both the resident experience and tourism industry, this property’s income potential will likely increase.

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

We used the MLS and the services of our Real Estate Agent/Broker and good friend.

How did you finance this deal?

With the help of our Loan Officer using a Conventional Loan.

How did you add value to the deal?

We had to make a ‘competitive’ offer to the Seller who owned the property as an investment (i.e., full-time rental), therefore we offered above asking price. So we’ve had to carefully consider what improvements to make. We’ve already added value with improvements to curb appeal, electrical rewiring, new duct work, addition of deck for an outdoor living space, etc.

What was the outcome?

We are still working on an outcome. We are currently residing in this ‘investment’ property as we make the needed updates/upgrades and continue to learn the best strategy to transition it into a lucrative short-term rental. That will hopefully occur by this summer.

Lessons learned? Challenges?

Using the MLS to find an investment property, especially one deemed a *HOT* property, is a challenge if trying to maximize ROI. ‘Behind the walls' repairs like electrical, plumbing, HVAC and duct work, etc. can rapidly exceed a projected budget in this current market.