Had Renter Finish Basement in Rental Property

[Erik Petrovich]

This is my first official post...and a success I think.  I bought a house in Spokane, lived in it for about 3 months but had to return to Tucson.  The house needed some sweat equity in the basement to finish off.  During the 3 months I put a lot of work in but could not finish.  When I left I got a renter and gave the family a break on the rent and bought all the material with the agreement he would make sure the basement was finished off.  The house has doubled in sqft and the basement now has a family room and master suite for $5000 in supplies and a cost of $3400 in rental income...so around 8500 cash in.  The house is now worth 64,000 more than what I paid for it.  I am not going to sell, rather I am moving in because I have big ideas for the house and it is in a good area.  All in all I think this was pretty successful.

[Erik Petrovich]

I kind of fell into that and I knew the person that rented my house...I will not be engaging in that again, I was lucky to have come out ahead.