First buy and hold Rental property

[Stephen Eisenhauer]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $130,000
Cash invested: $50,000

Hey guys ! This was my wife and i first rental property. It is actually a quite unique property seeing as it is on the property of our primary residence. It is a small single family 2bdr 1 bath that needed a full gut and rehab. We re-stained the hardwood floors, all new stainless appliances, new roof, windows , and doors. All new paint inside as well. We also did a brand new roof and siding. As you can imagine the house is virtually brand new now its great.

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

My wife and i wanted to generate passive income and this house is our start to doing so.

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

We actually were renting our primary residence that we now own and the owner at the time offered to sell us both properties. The rental needed a lot of work and a septic so we were able to get it way below market value.

How did you finance this deal?

We paid cash from savings

How did you add value to the deal?

We did a complete rehab on this property

What was the outcome?

Full rehab and beautifully cash flowing property.

Lessons learned? Challenges?

Dealing and managing contractors was a challenge for this property, had a few hiccups but overall went pretty smooth. A lesson we learned was to not get overwhelmed with the small stuff and remember the bigger picture and why you got started in the first place.