Turing primary residence into a medium-term rental.

[Jewell Vold]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $142,000

First home, turning into a medium-term rental.

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

There is a ton of equity built into this home, so we found the HELOC was our best tool. Using part of the HELOC loan to finance the down-payment on a new home, while paying off both cars and credit card debt, really started setting us up for success. In the process of finishing the basement to increase our square footage. Tip: When you buy real estate, especially now, hold on to it, and watch it appreciate.

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

This was my first home as a single mom. I knew real estate was valuable, but didn't realize the potential for wealth that came along with it. I was a newbie, and had a great agent who talked me through what to do, showed me an exhaustive amount of houses (sorry again lol) and was patient with whatever questions I had. We had a multiple offer situation. I wrote a letter to the sellers about what this home would mean for me an my young son. The letter, and an extra $1000.00 was all it took.

How did you finance this deal?

FHA loan.

How did you add value to the deal?

New interior paint, exterior deck paint, new roof over deck, newer appliances throughout, additional bathroom and living space, additional conforming bedroom, remodeled bathroom.

What was the outcome?

We're still in process!

Lessons learned? Challenges?

Facebook Marketplace is a secret gem. You have to hunt sometimes, but can find amazing deals there! Work/life/covid/remodeling balance. I switched carriers twice, met my husband, and had a baby all within a two year span, while working on getting the house remodeled. Take deep breaths, talk things out, make sure finances are up front and not hidden. YOU GOT THIS.

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

At the time I did. I worked with Shannon Stumpenhouse of Compass Realty.