Investment Info:

Single-family residence buy & hold investment.

Purchase price: $8,000
Cash invested: $20,000

In 2013, I decided to put much of what I had learned from books into action by purchasing a two-bedroom home—not as a traditional investment property, but as a home for my mother. I paid only $8,000 for the property because the previous owner no longer wanted it. Ironically, neither did my mother!

The house was spacious enough for her, but not for accommodating other relatives who might want to live with her. I began the renovation process by enlisting the help of a relative and some of his friends to gut the interior. Over the course of a weekend—and fueled by beer, food, and sledgehammers—we completely cleared out the space. Once the interior was stripped and the infrastructure tested, I brought in commercial contractors to handle critical systems like plumbing, electrical, roofing, and HVAC installation.

The house, built in the early 1900s, was originally a coal-burning residence. I removed the chimney entirely and installed a full HVAC system, making it the only house on the block with modern heating and cooling. This upgrade not only improved comfort but also significantly modernized the property.

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

I needed something small to learn from and for my mother

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

Drive around and called the realtor

How did you finance this deal?

Bank loan

How did you add value to the deal?

A complete renovation

What was the outcome?

My mom still lives in the home as my tenant.

Lessons learned? Challenges?

Here are a few lessons I learned during the renovation, many of which stemmed from the age of the house and unexpected hidden damages:
1. Damaged Plumbing: Several plumbing pipes were ruptured or severely damaged, requiring replacement.
2. Termite Infestation: I discovered termites, which led to additional costs for treatment and repairs.
3. Rotted Wood: Significant sections of wood in the structure were rotted and had to be replaced.
4. Lack of Insulation: There was no insulation in the att

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

No.