Buy and hold single family rental.

[Justin Messenger]

Investment Info:

Single-family residence buy & hold investment in Enid.

Purchase price: $80,000
Cash invested: $12,000

A small 1950s house that has been added to over the years, more than doubling its original size. We purchased it as a primary residence then converted it into a rental.

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

The price of the house for the 1,700 sq ft size, location next to a school, two driveways, RV parking, a good roof, and an attached shop at the end of the 2 car garage. It has a very large yard around the house. This was an ugly house with an out of control lawn with potential for forced appreciation. It also has potential for appreciation due to its location.

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

Found it online.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

Killed the weeds in the lawn, put down sod, rehabbed the nasty garage and shop to make them look appealing, added a finished attic storage area to the garage, painted kitchen cabinets, installed new AC and all new plumbing.

What was the outcome?

It has been great. It rented on the first day and they are still there.

Lessons learned? Challenges?

People appreciate great garages and parking for their vehicles and RV trailers. In this market those features bring up the rent value of the property .

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

Craig at RE/MAX