2% rented in Tupelo, MS. Cost: $39,000 Rent $750

[John Verner]

Investment Info:

Single-family residence buy & hold investment in Tupelo.

Purchase price: $33,500
Cash invested: $5,500

Bought an estate sale 1bd/1ba house. Converted the house into 2bd/1ba. Renting for $750.

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

SFH that had enough square feet to convert into 2 bd/1ba

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

My realtor had another investor trying to buy it from an estate sale. The estate lawyer was dragging his feet. The investor lost interest and moved on. She presented it to me, and I just right in. There were no negotiations because this was a hot property.

How did you finance this deal?

Commercial loan with bank

How did you add value to the deal?

Did most of the work myself on the weekends. Enclosed a porch into another bedroom.

What was the outcome?

Rented for $750

Lessons learned? Challenges?

Hire out more contractors.