MY SECOND INVESTMENT PROPERTY AND THE LESSONS CONTINUE

[Shayne Escobar]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $132,000
Cash invested: $66,000

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

It was always my intention to purchase 5 to 10 rental properties. I purchased the first in 2019 but when the pandemic hit, I decided to wait and see the impact on the economy. Big mistake! I didn't realize my mistake until Jan 1 2021.

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

I found this property on the MLS

How did you finance this deal?

I used conventional financing. 20% down, 30 year fixed.

How did you add value to the deal?

Reno'd the kitchen and baths. Paint and flooring throughout. There was no central heating and cooling, so I added it complete with new duct work. The HVAC put me way overbudget.
I originally intended to buy and hold but my contractor convinced me to flip it. I added the new HVAC to make the property an attractive flip. After a series of issues with contractors, flipping the property was no longer profitable, so I kept it.

What was the outcome?

see above

Lessons learned? Challenges?

1- When it comes to contractors, loyalty is not always a virtue. I should have vetted several contractors instead of waiting for my previous contractor to start work. Not only didn't he start the job, he ghosted me!

2- Never let anyone talk you out of your vision. I did not buy the house with the intention of flipping it and I should not have allowed my contractor to convince me to flip it.

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

I enjoyed working with my realtor Claudette Jacobs.