Easy mid-term rental

[Kelly Johnson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $137,000
Cash invested: $85,000

3/1.5 1960's ranch home in an urban area that had already undergone some updating prior to purchasing.

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

Had just started my journey as a real estate agent and wanted to find another property to add to my portfolio that would generate more income or have ability to appreciate faster than my other 2 properties.

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

Zillow for sale by owner. Offered a little less than list price to start with after it had been on market for a few weeks and then negotiated price down a little after it was under contract by accepting money towards purchase price in leiu of repairs.

How did you finance this deal?

About 40% down in cash plus a HELOC on my primary home.

How did you add value to the deal?

Home had already been renovated where kitchen and one bath had upgrades plus a carport had been enclosed. I have been using it as a mid-term rental and currently have military guys in renting by the room.

What was the outcome?

It has been a good cash flow property with little vacancy.

Lessons learned? Challenges?

Challenge is decorating to appeal to either gender

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

No, I was licensed at the time of purchase though