303 W Lemon St. Investment House

[Gabe Mcmullen]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $203,000
Cash invested: $5,000

Bought my first house with the intention to house hack. It's a 4 BR, 1 Bath in downtown Lancaster, PA.

The total rents for each room is $1,700 and total expenses including mortgage are about $1,650 per month. Whenever I move out of the place, I should be making around $300-400 cash flow. I rent each room individually with all utilities included.

The location is amazing, and I'm hopeful that it will appreciate up a lot as the city is constantly growing.

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

This house was towards to top end of my price range. It was on the market for about 60 days, so I knew I could probably get some seller assist (which I needed for closing costs). The house had a lot of potential as far as aesthetic. It had really ugly blue paint in several of the rooms (think Tobias Funke). It also had some ugly carpet, that had gorgeous hardwood floor underneath it.

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

I found it through MLS with my real estate agent. Negotiated to receive $11,000 seller assist to help with closing costs.

How did you finance this deal?

3.5% down with an FHA loan.

How did you add value to the deal?

Fresh paint, and refinishing some hardwood floors. Plans to add more value by installing vinyl hardwood floor, and renovate the layout of the house to add a better flow (in the next two years).

What was the outcome?

It's a long term rental.

Lessons learned? Challenges?

The house is semi-detached, and the neighbor attached is relatively delinquent. He has not taken care of his property at all, which leaves me worried that the value of my house will not appreciate as fast as I hope it would.

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

Caitlyn Horst was my real estate agent, and she was wonderful. We're long time friends and she's been an inspiration towards real estate investing!