Building my portfolio: 2nd step

[Bethany Otuteye]

Investment Info:

Single-family residence buy & hold investment.

Recently purchased 2nd property continuing with strategy of rentals focused on new/young families in an area with one of MN's better school districts, near airport and a confluence of highways to easily commute to the many fortune 500 companies in the area (if commuting is still a thing)

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

Focused in a geography we know (because we live there) as we are learning and building our portfolio

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

Worked with an investor agent I found through Bigger Pockets who helped me with the negotiation

How did you add value to the deal?

Purchased as 3 bed 1.5 bath. Put in egress windows in 2 non-conforming rooms. Also upgrading 1/2 bath in basement to add a shower. So will be able to market rental as 5 bed, 2 bath.

What was the outcome?

Reno is still in progress... Market changed quite a bit shortly after we closed in Sept 2022. House prices dropping, rentals slowing, and construction prices rising... Lots of learning in real time, but we remain optimistic

Lessons learned? Challenges?

Cash flow is critical in uncertain or shifting markets to be able to float when things don't move as quickly as you would have liked. Also, putting in extra time to vet handymen, contractors, etc is helping me build out a team for future projects