3 tenants in our Boise SFR

[Sariah Pearson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $365,000
Cash invested: $55,000

3 bedroom rental in Boise Bench area. The plan is to slowly upgrade various systems- windows, sprinkler system, roof, renovate bathroom, in order to increase value and make it a more desirable rental. Plan to hold 10-15 years.

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

Boise is a growing area, we have a child attending Boise State University, and we live an hour away. Boise seemed like a great place to invest.

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

Found it on the MLS.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

My husband is extremely handy so he has updated all the galvanized plumbing, added ceiling fans, and we are currently working on the kitchen cabinets. This spring we will replace the roof and soffit.

Lessons learned? Challenges?

I have 3 leases with 3 tenants who share the house. They are friends and this arrangement has worked out great: I’m not depending on one tenant for the entire rent amount and they have affordable housing. As young single guys, they’ve also been very flexible with letting us do construction around them. I give them small rent adjustments whenever we are in their space for days at a time. One plans to help with the roof in exchange for pet rent. We can pay down the mortgage and renovate too!