Mid-Term Furnished Rental in Rural Town

[Shanea Fulks]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $145,000
Cash invested: $140,000

UNIT #2

This is the furnished downstairs unit. We offer this as a Mid-Term rental for travelers and oil field workers. $2100 per month.
3 Bedroom 1 Bath. The upstairs unit is a long term rental at $2000 per month.

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

Mid-Term rentals are desperately needed in this area for travel workers

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

We passed by this home for over a year, it was empty and in horrific condition. It finally came on the market, WAY TOO HIGH at $275,000. We went in with our contractor who wrote up a bid. We presented our offer and the contractor bid and the seller accepted the $145,000 realizing the enormity of work needed to be completed.

How did you finance this deal?

Hard Money Loan, Refinanced with DCSR loan and appraisal coming in at $450,000

How did you add value to the deal?

The home sits on 2 parcels and we plan to survey and adjust the lines to build a duplex on the second parcel. At that time we will have 4 units on the one property.

What was the outcome?

$2000 for the top unit. $2100 furnished bottom unit.

Lessons learned? Challenges?

ALWAYS keep your contractor on their toes!

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

I WAS THE REAL ESTATE PROFESSIONAL. Shanea Fulks with Fathom Realty. I KNOW my numbers and market. I understand the best way to look for a great opportunity with ADD-Value.