Our First Rental Property Flip

[Mac South]

Investment Info:

Single-family residence buy & hold investment in Greenwood.

Purchase price: $108,500
Cash invested: $25,000

We purchased our next door neighbor's home in November 2019 and started renting it out in February 2020. My wife project-managed the process, and we all invested time and labor into certain projects that we didn't account for in the initial project list. Overall, this was a great first property for us since we could literally walk back and forth to work on it during breaks and free time outside of our day-jobs. Before and after: https://www.instagram.com/p/B7_V7y5HvfQ/?igshid=1qpr3vhjmnbum.

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

The price and the proximity to our own house made it ideal.

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

We spoke to our next door neighbor and came to an agreement with her outside of agents.

How did you finance this deal?

20% cash down and the rest mortgaged

How did you add value to the deal?

We invested $25k+ to this home to get it in good shape.

What was the outcome?

We found great tenants about 2 months before the project was completed.

Lessons learned? Challenges?

•You'll always spend more than you budget (duh)
•Homes built in the 40s have terrible electrical and plumbing (also duh)

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

We worked with Tinsley & Adams as our attorney agency. They are fantastic. We worked with Churchill for the mortgage. I wasn't quite as pleased with them this time around compared to our first home, but would still recommend.