Separation Anxiety: Keeping What's Mine

[Kyle Shankin]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000
Cash invested: $20,000

In 2008 after the market crashed, my wife and I bought a foreclosed house for less than half of its (previously) highest appraised value. It was a great first house, we lived there for eight years and made some minor improvements to it. When the time came to find a bigger place, we decided to just keep this house and rent it out.

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

I was interested in the initial purchase of the house because I was tired of living in an apartment. I liked this house in particular because it was foreclosed and, frankly, my wife (then girlfriend) and I were young and couldn't afford anything else.

How did you finance this deal?

Traditional mortgage

How did you add value to the deal?

I had to fix some rotting floor boards in the upstairs bathroom and entrance way. So I used the opportunity to (poorly) lay some new tile. I also added a new tub, new toilets and (again, poorly) tiled the shower walls.

What was the outcome?

We're currently renting the house out.