Our first home turned "rental" not doing it right yet.

[Samuel Meyers]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $125,000

Older home, needs freshened up. Needs a roof, siding, basement, kitchen, bathrooms, bedrooms, etc. Appraised less than a year ago for $160,000.

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

We had to upgrade to something bigger for our family and my buddy's family needed a place to live.

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

It was a Bank foreclosure in 2005, bought it with 2 mortgages out of the gate, a first and a second mortgage, because we were not creditworthy of a home.

How did you finance this deal?

The lender did all the work, I don't remember doing much of anything, they made it work.

How did you add value to the deal?

I haven't yet, it needs work.

What was the outcome?

Not good. It's a work in progress. I want it to be good but I probably need to sell it and start fresh.

Lessons learned? Challenges?

Don't rent to friends and family, as a favor, until you have all the information and a clue as to how to run a rental property.

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

Not this time.