First home with basement rental

[Mark Van Wagenen]

Investment Info:

Single-family residence buy & hold investment in Sandy.

Purchase price: $265,000
Cash invested: $35,000

Charming English Tudor rambler in a quiet neighborhood, with a great fenced yard, mother-in-law basement apartment and oversize 2 car garage. Tankless water heater (2016), central air system (2017), Furnace (2018), New windows installed (2018). Upstairs features 3 bedrooms & 2 bathrooms upstairs, along with kitchen, living room, and laundry. Basement features 2 bedrooms, 1 bathroom, living room, kitchen, utility room with laundry.

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

We knew that we wanted to buy a home, but we also wanted to be smart about it. We decided to buy in a nice area with a mother-in-law so we could rent it out.

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

Through a realtor

How did you finance this deal?

Bank Loan

How did you add value to the deal?

We spent a little bit of cash to make some changes in the basement to make it good to go for renters. Unfortunately/Fortunately, there was an irrigation issue in 2017 which flooded the basement. Our insurance covered it, and we were able to do a lot of repairs and upgrades.

What was the outcome?

We moved about a year ago, and have been renting the entire home since then.

Lessons learned? Challenges?

We bought at a great time in the market. The value has since gone up substantially. I don't know that we would buy this home now for what it is worth, but at the time it was a great opportunity.

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

Yes. We worked with an agent and a great lender (Close Your Mortgage - Draper, UT - Dusty)