3/2 Single Family Home investment

[Christian Mani]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $730,000
Cash invested: $94,000

3/2 single family home in an excellent neighborhood. Wasn't updated since 1974, so we had a lot of improvements to make. It was basically a new home when our tenants finally moved in. We spent about $94k: new: kitchen, baths, floors, carpets, windows, lighting, HVAC, gardens front and back. We are renting it for $3600 a month. Current Zillow estimates are in the $900k ballpark. No mtg, so rent is all pos cash flow.

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

Prop needed a lot of work and updating to make it rentable. We saw some pretty good upside longer term and were happy to have the rent as cash flow.

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

Used an agent who negotiated for us.

How did you finance this deal?

All cash.

How did you add value to the deal?

Extensive improvements to the property.

What was the outcome?

Still holding and renting the asset.

Lessons learned? Challenges?

We spent more upfront for improvements that we expected to be durable and last through many tenancies. Not sure we would do the same again, but not really regretting the outlay.

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

Yes, our agent did a good job for us.