First Single-family residence as a buy & hold strategy.

[Fernie Acevedo]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $260,000
Cash invested: $60,000

Purchased our first investment. A single 3/2 house with a detached studio and garage. The studio is ready with a full bath and walk-in closet. I'm adding a small kitchenette to make that studio more livable and to get more rent out of it. The numbers made sense for us and we'll keep this investment for a long hold and start working on the next one.

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

The numbers made sense and the area looks good as well. This isn't a multi-family but is giving us that option to go that route to rent the studio and house separate or together.

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

My wife is an agent and she found the deal. We worked directly with the agent in the area.

How did you finance this deal?

Conventional.

How did you add value to the deal?

Cleaned up the inside. Changed the flooring and updated a master bedroom. Added a min split system in the studio and in the process of adding a small kitchenette to it as well.

What was the outcome?

People are interested in renting it.

Lessons learned? Challenges?

Distance, it's 2.5 hours from us so we can only go on the weekends. Getting reliable local handymen in the area has also been a drag.

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

With my wife, Marysol Esqueda EXP Reatly.