First Rental Property - SFR Buy & Hold

[Andrea Williams]

Investment Info:

Single-family residence buy & hold investment in Oxford.

Purchase price: $50,000
Cash invested: $800

1500 sq/ft single family residence
2 BR / 2 Bath
$4500 rehab (bank financed) to convert into a 3 BR / 2 Bath
Rent for $950/month

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

My husband and I both have steady jobs, and at the moment are primarily looking for long-term buy & holds.

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

This was my husband's Grandfather's house that we purchased from his mother.

How did you finance this deal?

Financed this with a 5/15 balloon mortgage, with a $6,000 construction line of credit built in.

How did you add value to the deal?

Converted a large dining room/office into a 3rd bedroom and added a closet.
We dry-walled in the laundry room that was previously unfinished.
Ripped up old carpet and restored original hardwoods.

What was the outcome?

The house is almost complete and should be ready to rent by 1/15. We already have a renter lined up before the construction process was finished.

Lessons learned? Challenges?

Rehab went over. We didn't have a clearly defined timeline with our GC.

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

We used Matt Elliott at First Bank of Alabama for our financing. He has been amazing to help us come up with some creative financing.