Our 2nd Rental - Appreciation is a Wonderful Thing

[Robin Carriger]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $58,000
Cash invested: $7,000

Contributors:
Cindy Carriger

This was our second rental purchase. We learned multiple lessons, including catching a rogue contractor trying to pull a fast one. We'd hired him to buy & install the carpet. He was busted by someone else we'd hired. We'd paid for new carpet AND a new, thick pad, but he tried to just leave the existing pad in place. Needless to say, that was the last job he did for us .

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

Building cash flow toward financial independence in retirement has always been our focus.

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

We put a "We Buy Houses" sign on the corner of Norwood Dr & Hwy-183. The owner was having job troubles, so he called. We stayed in touch with him over a few months, and he finally decided he needed to sell.

How did you finance this deal?

We purchased this via a private money loan, and we ultimately paid it off by making consistent extra principal payments.

How did you add value to the deal?

New paint, flooring, bathroom cabinet mirror, landscaping, vent-a-hood, garage door opener, etc.

What was the outcome?

We still own & rent it. Rents have gone from $850.00/mo to $1495.00/mo.

Lessons learned? Challenges?

When it comes to hiring contractors for rehabbing a house, the cheapest guy never is. :-)

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

Not on this one... However, I do recommend developing relationships with private money lenders. They are pure gold, so always be sure to treat them that way.