Basement apartment converted/multi-family

[Jeffery C.]

Investment Info:

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

Cash invested: $26,000

Gutted 850 sqft flooded basement, installed French drain and 2 sump pumps, turned basement into 1bd/1full bath (tub & shower), kitchen, dining area, and living room. Installed egress window and drain fields for sump pump release area to prevent standing water.

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

Needed residual income to help cover daycare cost.

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

Girlfriend, now wife, owned the house and I moved in and saw the potential vs my bleeding bank account lol.

How did you finance this deal?

Low interest credit card (8%)

How did you add value to the deal?

Did a full conversion and made the basement a full apartment with bathroom and kitchen and walk-in closet.

What was the outcome?

Basement rented within a week for $850/month

Lessons learned? Challenges?

Stay on top of the contractors. I had a contractor walk off the job and had to find a new one to finish the job.

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

No