First Buy & Hold Property Under Our Belt

[Eric Stalter]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $102,500
Cash invested: $28,000

Rehabbed single family ranch property by replacing all trim, flooring, removing kitchen wall for open concept, new kitchen cabinets & island, replaced roof, updated electrical, new heat pump and A/C, complete Master Bathroom(with tile shower), and adding egress window in basement. Turned a 3/1 into a 3/2 - plus options for more living space in basement.

Current rent is $875/Month(cheap) and after tenants leave will be increased to $1150/Month.

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

We needed a place for our newly married daughter and son-in-law to live while they decide on their future. We wanted to start with rental properties and it was the perfect time to help each other out. We also needed to re-invest excess profit from our business to reduce our potential tax liability/exposure.

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

Found on the MLS. This property was vacant and had been on the market for almost 2 years. Four other deals on the property had fallen through.

How did you finance this deal?

Conventional loan with 25% down.

Lessons learned? Challenges?

Lesson #1 Buy at a better price.
Lesson #2 Don't over invest/rehab items.
Lesson #3 Set a reasonable rehab budget and expect way more issues to be uncovered as you go.

We have to get passed the "if we were living here, what would we like" because we aren't living there and I like things to be pristine and aesthetically pleasing.

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

Made a connection with a real estate agent that also flips properties, works with other investors, and has a good knowledge of the area.