Miner Ave Rental - First Deal

[Trisha Witte]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $52,650

Cash invested: $8,000

750 sqft home in Lakeside. Currently renting as a long term rental, and am considering making it into a vacation rental next time the property turns. Purchased in 2016 as a primary residence and lived in it for 1 year, then turned it into a rental.

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

We purchased the house to live in after spending 6 months living with my parents after moving home from out of state. We knew we didn't have a lot of cashflow, as we had just graduated from college and had student loans and low paying jobs. We decided after a short period of time that we needed something a little bigger and with a garage. We decided to try to rent it out and had no problem doing so.

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

Found it on the MLS. Negotiated through our realtor. Offered less than asking as the roof needed to be replaced

How did you finance this deal?

30 year mortgage with 3% down.

How did you add value to the deal?

Tiled the shower, replaced the kitchen flooring, and replaced the roof. All done with sweat equity.

What was the outcome?

We had no problem renting the space out and the first time. It doesn't cash flow a ton, but it was enough for us to get some skin in the game and get a taste of real estate.

Lessons learned? Challenges?

We learn how to screen for tenants, roofing is not for me, making the bathroom beautiful was really a hot topic with the potential tenants.

Challenges - Because the space is so small, it is hard to keep tenants in the space. Currently considering making it into a vacation rental.