Massachusetts SFR Rental Going Strong

[John Andersen Schuck]

Investment Info:

Single-family residence buy & hold investment in Beverly.

Purchase price: $215,000
Cash invested: $40,000

Purchased distressed property in 2008, upgraded it, lived in it for 2 years, then we have rented it out ever since.

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

The point of entry was very attainable for us and it had solid bones as a house. Minor upgrades yielded a good rentable house.

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

Found it through a local Realtor.

How did you finance this deal?

Originally it was on a 30 year fixed at 6%. Now it is on a 15 year note at 4.5%.

How did you add value to the deal?

Lots of sweat equity. At the time in our lives we did not have a lot of extra cash, so I spent a ton of time rehabbing the place.

What was the outcome?

Investment income.

Lessons learned? Challenges?

It is a great experience to be able to push through the 'demoralized' stage of one's first major renovations and see the house get re-appraised more than 20% higher that next year.

[Christian Nachtrieb]

Kick *** dude! Nice job.