Located in the Sioux Falls, SD market! Had around $3000 in make ready costs and was able to negotiate $2500 in seller credit after discovering electrical and plumbing issues during the home inspection due diligence! Looking to get it rented as soon as possible and currently learning the ins and outs of tenant screening! I have referenced back to The Book on Managing Rental Properties many times during this process.

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

I like the long term benefits of buy and hold real estate and love the feeling of having my own projects to focus on outside of my W2 job.

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

MLS and using my real estate agent who I initially met on BiggerPockets!

How did you finance this deal?

Conventional loan through a local bank.

How did you add value to the deal?

This was marketed as a 3 bedroom 2 bathroom house with 1056 sqft. It had a den off of the living room and the rooms were separated with a door jamb. The den had means of egress and over 70 sqft. I added a smoke detector and a door in the existing door jamb to turn it into a 4 bedroom 2 bathroom rental! Also, the appraisal came back and determined the house to have 1148 sqft so nearly 100 sqft more than it was listed for. Not considering a 4th bedroom, it appraised for $7,800 over asking!

Lessons learned? Challenges?

The challenges were dealing with the electrical issues and plumbing. Getting the estimates in during the due diligence period in order to use them for negotiation was a new experience for me and helped me learn how important home inspections and proper due diligence can be. What I also found to be very valuable was buying a $40 lockbox to hang on the front door so contractors could access the property without me having to drive there each time.

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

My real estate agent is Andrew Adam and he was very helpful for all aspects of the buying process and during the offers I made on about 5 other properties before this one!