Value add add'l bedroom and bathroom no SF change

[Kristi Kandel]

Investment Info:

Single-family residence buy & hold investment in Gahanna.

Purchase price: $147,000
Cash invested: $41,000

Single family home 2/1 converted to 3/2 - the SF allowed for an additional bedroom and bathroom if a few walls were moved

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

looking for a cash flowing LTR to invest in

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

MLS and negotiated the seller to the lowest sale price to pay off all of his liens

How did you finance this deal?

Put 25% down as an investment property

How did you add value to the deal?

Removed a few walls to add a 3rd bedroom and a 2nd brand new bathroom.

What was the outcome?

After all of the work was finished we listed it for rent and were able to get a short-term renter whose house burnt down for 6-9 months about $600 over market rents for a LTR.

Lessons learned? Challenges?

Really understand a rental market before purchasing a property. We assumed a lower rent in the initial budget but had too high of an upside. We also spent more on the rehab than anticipated using all of the contingency. However, we got lucky to meet and exceed the upside for the first 6-9 months to build up cushion in the property for turnover.

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

N/A