Finally got started!

[Nathan Greeney]

Investment Info:

Single-family residence buy & hold investment in Waco.

Purchase price: $120,000
Cash invested: $47,000

Bought as a 3 bed 2 bath and turned it into a 4 bed 2 bath to rent out.
Updated the two baths, kitchen and flooring throughout in addition to adding the 4th bed.
Renting for $1595.

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

Decided to start my investment portfolio with SFH that are in decent areas to attract families. This would limit the damage to the property and hopefully reduce the turnover of renters.

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

I found a high producing team and reached out to their lead realtor that I was looking for investments in Waco. They passed me along to on of the other realtors in their team and we worked through what I was looking for in a place. Looked through many deals and offered on a few, one that got accepted even but eventually fell through. I believe this helped show that I was serious though and eventually was shown an off market deal when we made the effort of taking a trip to visit in person.

How did you finance this deal?

Financed with a conventional loan with 20% down. $23,000 down.

How did you add value to the deal?

Had the property manager renovate the two bathrooms by almost gutting them and renovating with modern styles and materials. Kitchen was also renovated by refinishing the cabinets to a white, new counter tops, new flooring and new appliances. Turned an extra living room or (formal dinning room?) into a 4th bedroom. Refinished the hardwood floor in the rest of the house as well as minor touch-ups as well.

What was the outcome?

Looking for a renter by the start of next month for $1595 and should end up cash flowing around $235 after my expenses and repair budgeting.

Lessons learned? Challenges?

Relationships can make or break the deal. Renovations became more than originally estimated but thanks to a new budding relationship with the property manager who was taking on the renovation work we were able to limit how far over budget it went.