4th Investment Deal - Live in Flip turned Rental

[Max T.]

Investment Info:

Single-family residence buy & hold investment in Phila.

Purchase price: $115,000
Cash invested: $60,000

Small single family about 1000 square feet.
In the neighborhood adjacent to where I had previously been living/investing. In the path of progress.

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

Wanted to move out of my duplex and make another long term investment.

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

MLS. There were a lot of problems with this house that came up in the inspection. It was listed for 145k. Under contract for 130k and purchased for 115k.

How did you finance this deal?

Conventional owner occupied, but still put down 20%.

How did you add value to the deal?

New kitchen, improved the layout.
2 new bathrooms.
New flooring throughout.
Fixed the layout of the bedroom closets to make them more functional and appealing.
All new windows.
New concrete patio.

What was the outcome?

This building is now worth somewhere between 220-250k. I owe just under 80k on it. I opened a HELOC on this equity which has given me flexibility on other deals.
We lived there well for about 3 years.
Now it is rented for a solid 1450/month. We still have the original mortgage on it, just under 700/month.
This property has a great layout and rents easily. This is my #1 candidate for paying off the mortgage when the time comes.

Lessons learned? Challenges?

Most of the renovation was done in the 2 months prior to moving in but I still call this a live in flip since we were fixing thing the whole time.