East Nashville SFH

[Stephen Parker]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $336,500
Cash invested: $20,000

Single family home in E Nashville. Purchased from owner and rented to existing tenant until end of 2022. Rehabbed and added bathroom plus updated throughout winter of 2023 to make rent ready for Spring 2023. Will rent long term and add DADU in rear (large lot with 2 streets and alley access) or rebuild with duplex or triplex in the future depending on cashflow.

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

Purchased in 2021 at a 2018 price due to existing lease purchase agreement. Minor rehab will bring value up in a rapidly-gentrifying area. Will rent and use cashflow to fund a DADU build in the back after a while.

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

My business partner had a personal relationship with the former tenant.

How did you finance this deal?

I purchased in cash and our business now pays me a monthly note.

How did you add value to the deal?

Gutted the outdated main bathroom and added a 1/2 bath to a primary bedroom. Patched and painted all interior and updated fixtures. Added flooring in many rooms and just fixed a lot of small issues with an 80 year old home.

What was the outcome?

Will rent for double what it was going for when we purchased. That cashflow will be held in operations acct to fund a DADU or an eventual duplex or triplex in place of the home. We are keeping options open to see what the neighborhood needs and what code changes will allow for in the future.

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

I am a Realtor and I funded the cash purchase.