Single family buy and hold in Southern California

[Eric Shadle]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $299,500
Cash invested: $124,500

We bought this house as a 3 bed, 1 bath house in late 2016. The house was built in 1926 and needed extensive work but the price seemed right and it allowed us to stop house-hacking our duplex. We reconfigured the layout to add a bathroom and ended up with a class A property with moderate cash flow.

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

I like the idea of living in a property for two years and then renting it out because it allows us to get better financing terms and has tax advantages if we ever sell it.

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

I found this deal on the MLS. It had been sitting for 165 days so the seller was willing to come down in price.

How did you finance this deal?

Traditional 30 year fixed

How did you add value to the deal?

I found the deal and coordinated all the contractors. In addition, I did a substantial amount of the work myself to add value to the property.

Lessons learned? Challenges?

I need to get better at finding deals because there was not much meat on the bone for this one. However, the house worked really well for my family for two years and now earns us a steady income.

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

Agent - MaryBeth Cochran
Electrician - Emil Catinean