Family home turned rental

[Shawn Mains]

Investment Info:

Single-family residence buy & hold investment in Hesston.

Purchase price: $50,000

Built in 1927; purchased in 1997. Replaced the cinder block foundation with a full finished basement completed in 2002. This property has been a rental since 2003. Over the years I have replaced the sliding, roof, windows, and exterior doors while trying to maintain the historical look of the house.

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

I didn't want to sell the home for sentimental reasons but I was 18 years old at the time and didn't have the money to let it sit empty while I was going to college so I turned it into a rental.

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

Childhood house that I inherited.

How did you finance this deal?

Assumed the loan from my Mom.

How did you add value to the deal?

Finished the basement, replaced exterior doors and windows, had the siding redone, and a new roof.

What was the outcome?

This property has been cashflowing for me since the beginning.

Lessons learned? Challenges?

Spending money for a few things like replacing the original windows in the house are a big ticket expense but will do wonders for the renters and the word of mouth advertising. When those renters moved out there was a waiting list of people wanting to get into the house.