Primary Residence to long term rental

[Aaron Mead]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $283,000
Cash invested: $85,000

Single family residence that I lived in for 2 years and was completely renovated. I did a large majority of the renovations myself, but did utilize contractors for some of the larger work scopes. A cash out refi was done of this property in late 2021 and I was able to pull all my cash out. This property is now utilized as a long term rental.

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

This house was purchased as my primary residence and at the date of purchase I didn't really view it as an investment property.

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

This deal was found on the MLS.

How did you finance this deal?

Traditional financing

How did you add value to the deal?

This house was a huge value add opportunity because it hadn't been renovated since it was built in 1965. The entire house was renovated and the landscaping was redone.

What was the outcome?

I did a cash out refinance on this house and it is now utilized as a long term rental.

Lessons learned? Challenges?

The biggest lesson I learned was making sure to do your due diligence. I probably should have passed on this property because of all the issues it had, but in the end it was an invaluable learning experience. Make sure you know potential issues in the area you are buying. Pay the extra money for a structural engineer if you are buying in an area that is notorious for expansive soils and structural issues.

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

Yes, I worked with Isaac Mead and would recommend him to others.