Walnut Drive (Rental #2)

[Max C Moore]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $200,000
Cash invested: $90,000

I purchased this property as my primary residence and initiated a value-add approach by renovating the outdated home. During the first year, I utilized a house-hacking strategy, renting out bedrooms while living on-site. Afterward, my wife and I continued residing there until we decided to move to a larger house. We opted to keep this property as a rental, with plans to refinance this summer. The substantial equity gained from the renovations will be used to acquire two more duplexes. Despite the current favorable cash flow, we are open to adjusting our 3.25% rate for strategic expansion.

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

Your primary residence is the easiest home to get. Having the ability to add value to increase your equity is a must. Just followed the simple rules of investing.

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

This was an off market deal in the height of the market craze.

How did you finance this deal?

Conventional

How did you add value to the deal?

Completely gutted the home. Added a laundry room (previously in the garage). The list goes on a lot of DIY.

What was the outcome?

Ability to use real estate as a vehicle to build wealth. This one house in 20 years will be the foundation to my portfolio.

Lessons learned? Challenges?

DIY sucks. I would have rather saved my time & paid!

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

I am a real estate professional!