Eastside Buy and Hold

[John Wigglesworth]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $51,000

Bought this HUD home with an aggressive bid. Many repairs and replacements were unexpected, e.g., water heater, HVAC, and plumbing. Rented for $1275, high for the neighborhood. We got excellent tenants. They moved out and the home was rented the next day to more excellent tenants for $1295. It's the nicest house on the street, which is not our goal, but a standard we often meet. We didn't meet the 1% rule as planned but that's okay. It's the long game.

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

Lower priced property with room for improvement as a long term rental.

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

MLS

How did you finance this deal?

BRRR. Cash then refinanced later.

How did you add value to the deal?

New roof, water heater, flooring, kitchen cabinets, new lighting and ceiling fans, paint inside and out, and the little details that make things look new (like replacing all old dingy outlets, light switches, and door hinges).

What was the outcome?

Went over budget. Rented easily. Stays rented.

Lessons learned? Challenges?

Budget more for the unexpected. Never rely on a working water heater or older HVAC... assume they need updated for your budget.

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

Yes. I worked with Natalie Kavulic.