Buy and hold 3 BR, 1.5 BA in Oregon

[Mary Gilbert]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $160,000
Cash invested: $28,500

Fixer house with foundation issue. Leveled house- exterior paint, fresh landscaping, added privacy fence, interior paint, new windows, new mini split heat pump system, painted kitchen cabinets, new counters and hardware, new bathroom vanities and toilets, expoxied baby blue bathtub and tile surround white. Laminate floors in hallways, kitchen and dining. Kept carpet in LR and hardwood in bedrooms.

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

It was listing my team had that started out at $285,000 - price kept coming down so it interested me and I am building my passive income portfolio - this has cash flow of approx $1000 / mo after the mortgage and before taxes and insuranace.

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

My team had this listed - offered full price knowing that the price was getting reduced to beat out another offer.

How did you finance this deal?

Private money - $10,000 down - my private money lender said I didn't have to put any money down but I wanted to keep the payments at a certain amount for cash flow.

How did you add value to the deal?

Interior, exterior paint, fresh landscaping, fresh cosmetics, privacy screen / fence improved curb appeal by screening off the neighbors messy yard. Improved energy efficiency with new windows and mini split heat pump and took advantage of the tax credits for creating energy efficient rentals.

What was the outcome?

Improvement to the neighborhood and happy tenant - good cash flow and increased net worth.

Lessons learned? Challenges?

My husband managed the project and he learned that it takes longer to complete than he was expecting due to working around contractor's schedules or materials not showing up on time.

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

Myself!