Rental- buy and hold

[Sariah Pearson]

Investment Info:

Single-family residence buy & hold investment in Twin Falls.

Purchase price: $119,000
Cash invested: $8,000
Sale price: $165,000

1920’s 3 bed/1 bath. Updated plumbing, electrical, windows, replaced crumbling steps and added sprinkler system.

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

We live in company housing that my husband’s company provides and we realized we should own some property to gain equity. We wanted an older house to update and renovate because my husband is very handy.

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

MLS

How did you finance this deal?

Bank loan

How did you add value to the deal?

Updated the property to become a low maintenance turn key rental.

What was the outcome?

Sold in 2019 and gained 80,000 in equity.

Lessons learned? Challenges?

We should have worked harder at negotiating the initial price lower. We agreed to a few concessions when selling the property that I found out the buyers didn’t think we would agree too, so we should have negotiated harder there as well.

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

Nathan Lyda was a great real estate agent from Twin Falls.