First home turned into rental

[Tyson LaRochelle]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $125,000
Cash invested: $30,000

Older 3 bedroom 1 bath home with good bones and an separate detached garage with one bedroom one bath apartment behind garage.
Both have a porch that faces river frontage sitting on 1.5 acres of land. Safe country setting with top school district and 10 minutes away from all amenities

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

Wanted to buy a house that was affordable and that I could work on / build my knowledge of construction. It was a bonus to find a place already set up with a ready to rent apartment.

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

Listed on the MLS for two weeks and met on the owner during showing.
He was a sweet 80 year old man who lived next door and liked my enthusiasm to rehab the same home he owned since he was in his 20's. it was listed for 132,000 and I purchased for 125,00 after initially offering $117,000. Nicer old man who was a retired construction worker who put a lot of love into this home and wasn't going to let it go too cheaply.

How did you finance this deal?

Mortgage Broker

How did you add value to the deal?

Flooring, Paint, and some minor cosmetics added a fresh look to most of the house allowing me to move in. Later came new windows, siding, shingles, garage doors, All work done with friends and family .

What was the outcome?

Still own the home but rent both the house and the apartment.

Lessons learned? Challenges?

Mostly Challenges with Tenants. learning to better screen them. Apartment originally was a two bedroom but was attracting too many family's and would put a larger load on the septic system. Decided to turn it into a one bedroom apartment and even raised the rent to have a more studio apartment feel.

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

Residential mortgage services,(RMS) Debbie Bodwell is a great broker. She is efficient and fast.
Also my Agent was Shirley King out of Poland Maine, and she was a pleasure to work with.