Live-in/ Fix-Up... End Goal... Rent out.. All in All, Success!

[Shane Cleary]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $119,000
Cash invested: $22,000

This was myself and my wife's first investment property together. We wanted to purchase a home that was livable but could use some updating. As we loved the area, we wanted to live in the home and fix it up at the same time, and we did!

After purchasing the home for $119,000 (negotiated the sales price down from $130,000, we pushed in about $22,000 cash to update the entire interior and exterior of the home - nothing fancy, but tasteful and simple! We then went on to refinance out at an ARV of $190,000. We used our cash out to purchase our new primary and turned this home into a rental. As it is located 3 blocks from KU Medical Center in Kansas (a multi-billion dollar development) we had a high demand of renters seeking to live in the home and expect solid appreciation over the coming few years. We ended up getting renters in at the start of April 2020 at $1,685.

All in all, an enjoyable and profitable experience - now on to the next one!

How did you finance this deal?

Conventional Financing - 30 year @4.5%