Small Town Midterm Rental

[Jun Lopez]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $70,000
Cash invested: $77,000

This is a single family home that has additional square footage that is not recorded prior to closing. I turned it into ADU(duplex/in-laws suite). From original the original 3/2 with a salon attached to 4/3 or 3/2 and 1/1 duplex. Right now I have a midterm tenant that wants to stay for 10 years for the 3/2. I am making 4x the monthly rate for that unit and I'm still renting the 1/1 for short term and midterm.

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

Almost no competition and be converted to other strategies if it will not work out.

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

Facebook Marketplace. Establish a relationship with the seller. Seller accepted our offer even thou it is significantly lower than the other offer because we were able to connect with them.

How did you finance this deal?

Combination of other property's equity and 401-K.

How did you add value to the deal?

By adding ADU. From 3/2, 1,500sq.ft. to 4/3, 2,200sq.ft.

What was the outcome?

The outcome is great

Lessons learned? Challenges?

It takes a lot of work and worries but worth it when it is done.

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

Local lenders are the best way to get financing