3rd Rental Property Completed

[Rob Baker]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $99,000
Cash invested: $40,000

2 Bedroom 1 Bath home turned into a 4 Bedroom 2.5 Bath Home.

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

Value of single family homes in the area and number of renters living in this market.

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

MLS negotiated through a Realtor

How did you finance this deal?

Private Loan at 8% for the purchase and used my own money and credit lines for the rehab.

How did you add value to the deal?

Gutted the house, added 2 bedrooms and 1.5 bathrooms in the existing structure. Added rear deck.

What was the outcome?

Renting for $1,800 a month. Has not been appraised yet, but should appraise for $245,000.00. Will cash out refi in December/January.

Lessons learned? Challenges?

We ended up having to get new electric and gas service ran to the property that was not figured in our budget. Learned to take a closer look at the services coming into the home, and how long working with utility companies can take.

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

Greg Chamish from Black Dog Home Group in Churchville, MD was the Realtor.