Brother wanted to sell a fully paid-off home, so I bought it

[Sarah Lyon]

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $60,800

My angel of a mother passed September 2017 and left her home in Jacksonville NC, home to Camp Lejeune, to my brother and I. The market was no good for selling and I really had no interest in doing so anyways as the house is a beautifully passive income as it is paid off. So, I used my inheritance to pay him off for it. Rent's $1350 a month. Home value has increased about 10k since purchase due to the market alone, not to mention the renovations and repairs done.

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

Opportunity and an eagerness to get involved in real estate investing

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

My brother wasn't interested in real estate, and still isn't to this day.

How did you finance this deal?

Cash

How did you add value to the deal?

New paint, new carpet, new laminate, pressure washing, landscaping, window repairs, fixture updates, sprayed for pests and did electrical repairs.

What was the outcome?

Was vacant for about 2 months but was rented when we brought the rent down to 1250. The house faired incredibly well through the hurricane that destroyed many houses in the neighborhood and the rest of Jacksonville. Rent was raised for the lease renewal and my tenants have been great. Retired military with teenagers. My neighbors keep an eye on the house for me and I have heard no qualms.

Lessons learned? Challenges?

Make sure your contractor is updating you on the itemized receipt as they go. Also ensure you are both aware of what is needed to accomplish the needed timeline.

[Sarah Lyon]

Thank you everyone for the encouraging words! 

And thank you @Michael Ablan.

I do plan to do that @Padric Lynch but I am currently just trying to educate myself on HELOCs more. Just purchased my first home by more traditional means and plan to live in it for a few years before turning it in to a rental as well. Was time to find my own place in Raleigh, which is where I live now.