1st Rental of mine in GR

[Christian Huyge]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $150,000
Cash invested: $25,000

Being a real estate agent I am fortunate to have some things fall in my lap. Prior to this I did a few flips, but realized that I wanted more long term wealth and the income from those flips come in and then they are soon forgotten. This home was not real attractive inside and out, but was mostly cosmetic. My goal was to not need to do much to it for long time, so I put in new furnace, AC, water heater. The roof was 2 years old. I went in and did the cosmetic stuff myself to save money.

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

The location was the biggest thing for me. I wanted to invest close to my home and when this came up it was a great location and I knew the money I needed to put into it made sense in the big picture.

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

Another agent in my brokerage had it coming up and I made an off market offer and they accepted.

How did you finance this deal?

I did a conventional loan with 20% down.

How did you add value to the deal?

All new appliances, new furnace, ac, water heater. Redid the kitchen and 2 baths. Added a new driveway.

What was the outcome?

It has been great. 0 vacancy to this point.

Lessons learned? Challenges?

I am still learning while doing the work myself, so it takes double or triple time. But I really want to know what goes into it, what material costs are, the hiccups and everything contractors go through, so when I hire them out I will be more informed.

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

I like to think I do a fairly good job. I am born and raised in Grand Rapids, and been selling real estate for over 10 years now.