Turned a 0 to a Hero!

[Lesa McComber]

Investment Info:

Single-family residence buy & hold investment in Sacramento.

Purchase price: $300,000
Cash invested: $20,000

5 bedroom former Adult Family Care Home. 4500sft 5 bedrooms 3 baths.
The 4 Bedrooms are separated by common space womens side has a shares bath. Mens side has a shared bath.
5th room is being turned into an AirBnB since we are a 10 minute drive to beach and average hotel is 250 and up a night and does not allow dogs. We do.

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

My Wife wanted to open a Senior Care Business....me not so much, but I supported and financed the endeavor.
When it did not work out, We pivoted to house hacking.

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

Great question.
Found on zillow for 425k
Talked them down to 300k since they had no comps for that appraisal and this was just a few months before the C19 real estate rush. God is good and luck favored us here.

How did you finance this deal?

19k down the rest FHA at 3.5%
Sold our 3 bedroom 1 bath liability in Tampa for a nice profit.
Would have kept it but my debt to income was no bueno.

How did you add value to the deal?

Modest improvements and updates to dated features. Inside and out.
Made a nice curb appeal since the House alone stands out as a mini mansion amongst bungalows.

What was the outcome?

1500 a month cashflow
Full occupancy even with semi regular turnover.

Lessons learned? Challenges?

Since covid I have embraced the New York rental style. Rent by the room. Cashflows way more than a single family rental.

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

Not at this time.
I am working with a young firebrand right now....but she has not brought me the 4plex of my business dreams yet.