First Live and Flip Rental Property

[Daniel Vallejo]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $450,000
Cash invested: $35,000

Turned Garage to ADU, house hacking and living in ADU while renting the rest of house. Monthly out of pocket loan cost after rental income from the primary home, $150.

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

Needed a home that I could own and be able to rent out part of it to live there for a very low cost.

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

MLS. Took a contractor with me to give me a bid for everything that needed fixing.

How did you finance this deal?

FHA loan 3.5%

How did you add value to the deal?

Converted extended living into ADU. Rehabbed kitchen and all rooms.

What was the outcome?

ARV $580,000

Lessons learned? Challenges?

Landscaping is expensive and gets ruined really fast if not properly maintained. Will be doing artificial landscaping moving forward unless it’s a flip.