3Bed 2Bath OK Rental House.

[Shaun Lloyd]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $136,000

This 3bed 2bath brick house is a rental property going for roughly $1420/mo. Purchased June 2005 for $136K... Aug 2022 value of $235k.

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

This was originally purchased as my personal residence with a VA loan while active duty. I then left the area and rented it out because I didn't want to sell it and make just $4k in profit. It's been a rental since 2008.

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

Before the age of smart phones... I called the number on the sign in the yard! Purchased through local agents. Standard/expected wide-spread agent VA-loan. Not much negotiating room with the builder.

How did you finance this deal?

VA loan (active duty military)

How did you add value to the deal?

I did not added any value.

What was the outcome?

House has been rented for 14 years, producing decent returns and solid depreciation!

Lessons learned? Challenges?

Never let your neighbor run the rental property... Caused an eviction 5 months into the first tenant's term, because they couldn't pay. Background check was not good and I was over-seas.

The follow-on Property Manager was not adequate at handling follow-on tenants... 6 months the house sat vacant... I advertised the house on FaceBook Marketplace and got 10 replies in 30 minutes. Got a capable PM after, that uses Appfolio for all their documents.

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

Nothing stands out.