First SFH Rehab/Rental
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $185,000
Cash invested: $45,000
Purchased as a primary SFH with low interest rate. Invested 45K into full rehab and renting due to military permanent change of station (PCS).
What made you interested in investing in this type of deal?
The low interest rate, consistent increase in equity, and potential for cash flow.
How did you find this deal and how did you negotiate it?
The home was originally purchased as a primary home for my family.
How did you finance this deal?
Financed via VA home loan
How did you add value to the deal?
Full rehab of the home to include new primary and secondary bathrooms, installation of new island and coffee nook with granite countertops, new water resistant LVP floors throughout, new paint, crown moulding in living room & kitchen, new electric water heater, and conversion of coat closet to mud room.
What was the outcome?
An increase of equity to the home of nearly 80K both via area comps and rehab. A monthly cash flow of $650 and a low monthly mortgage.
Lessons learned? Challenges?
In the future, I would do a better job of vetting my contractors and negotiating my price. I also wouldn't tackle another full rehab project similar to this unless the sales price was lower.