First STR/MTR in Temple, TX

[Taylor Dasch]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $96,000
Cash invested: $17,000

While I was working on my rehab ( when I was trying to do it myself) a lady knocked on the door and asked when it would be available. She said her landlord is selling in February. Unfortunately mine would not be ready in time for them but I did contact the landlord to see what she wanted for the property. As a new realtor I wanted to list it. I was going to list it at 125k. But after walking the property, I really thought it had potential to be a STR/MTR due to its proximity to the hospital and unique vaulted ceilings. I ended up offering her 106k for the property.
There were many issues mainly due to probating her husbands will, this led to delayed closing and by the time we were ready to close I was unable to get conventional financing.
I had to lower the price to 96k. Closed at 96k, Put about 25k into the property, It appraised for 158k. Not a slamming deal but it is producing AMAZING cash flow.

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

I saw opportunity for a higher cash flow with a STR/MTR in this market. This aligned with my goals and was worth the risk of not knowing all of the details of using a property as a STR/MTR.

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

Tenants came and knocked on my door to ask about when my rehab at the time would be ready. I contacted the landlord immediately after who was ready to sell.

How did you finance this deal?

I initially planned on using conventional financing on this but my financial situation changed and ended up using HM at a lower PP.

How did you add value to the deal?

I installed AC + updated Electrical, Painted, new flooring, light fixtures, and a full kitchen remodel.

What was the outcome?

Appraised at 158k. Rented for $1900 / month on a MTR lease. I am still in a HML but expect to cash flow about 500-600 on a conventional loan.

Lessons learned? Challenges?

Biggest lesson learned is to hold back some money to the contractors until the property is ready to go and have everything that needs to be done in writing.
The other lesson is to have contractors that I trust ready to move on the job - holding costs were hard on this one.

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

Lone Ranger Capital as a HML