Long term rental vs Rooming House

[Jason Coleman]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $155,000
Cash invested: $21,500

Not much cashflow on this play because it's seller financed with only 10% down. I plan to tear down this house in 3-4 years once we own most of larger parcel around us. Looking to build a tiny home community or more likely a 30 unit apartment complex. Parcels are already zoned multifamily so that's a plus. We have considered converting back into a long term rental instead of a rooming house. We're still working out the management kinks.

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

The development potential

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

On the MLS

How did you finance this deal?

Seller Financing

How did you add value to the deal?

LVP flooring and a little bit of paint.

What was the outcome?

Buy and Hold

Lessons learned? Challenges?

Stay on top of your contractors. We paid one our flooring guys before the job was finished and we had to hound him to get back out. Minor slip up that pushed our renovations back a week or so. It happens.

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

I am an agent and I rolled the 3% commission into the deal.