Gifted House Turned to Rental Property

[DJ Slivka]

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $1
Cash invested: $25,000

In 2016 my father unfortunately passed away. However, he left me with his house. He purchased the house in cash and when it was willed to me, I owed $0. I put roughly $25,000 to get it rent ready and have rented it since 2018. I am looking to take the equity I have in this house (conservative estimate of $70,000) and start building a portfolio. I am hoping the BP family can help me out.

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

I did not want to sell the house, I owed $0 and had come in to some cash from my dad's estate.

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

It was willed to me.

How did you finance this deal?

No financing needed so far.

How did you add value to the deal?

New paint in every room, hand painting the outside of the house, new flooring in the kitchen, painted the cabinets, new carpet throughout, installed a shower.

What was the outcome?

We are still have the property and are hoping that this can be a springboard to get us into real estate investing.

Lessons learned? Challenges?

The biggest lesson was that I was using a contractor of a friend of my fathers. I truly believe I was taken advantage of as I was in Tennessee and he was in Ohio. Most of the work was good but it was very costly. I didn't shop around at all.

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

No