Fixed and Rented for Cashflow

[Scott McPherson]

Investment Info:

Single-family residence buy & hold investment in Prairie Vlg.

Purchase price: $132,500
Cash invested: $20,000
Sale price: $155,000

Purchased ugly home on block and renovated with nice features then rented out for 8 years.

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

This home had 4 bedrooms in an area where most were 2 beds. This provided more rooms to rent.

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

Found on MLS with high days on market.

How did you finance this deal?

FHA

How did you add value to the deal?

Replaced flooring with tile. Added new kitchen cabinets and granite counter tops. New appliances. New bath tubs and tiled baths. New carpet and paint. New fixtures.

What was the outcome?

Rented for 8 years providing income.

Lessons learned? Challenges?

Don't over fix a house more than the neighborhood can sustain.