My First SFH Long Term Rental

[Cameron Adams]

Investment Info:

Single-family residence buy & hold investment.

Cash invested: $50,000

This is my first rental and it was my grandmother's house. It was inherited but was on the way to being condemned. I spent a lot of time and money fixing it up and even made the cardinal sin of paying a contractor upfront. The contractor was fired because a job they told me would take 5 days was not done 1 1/2 months later. It appraised before repairs at 55k and after repairs it came in at 150k! I spent 45k fixing it up getting new everything. It was a great first experience.

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

I've been a real estate agent for three years and I was looking for a way to get started and my grandmother blessed me with this property.

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

Family Inheritance.

How did you finance this deal?

I got a loan for repairs from the bank directly.

How did you add value to the deal?

The home was vacant and had mold. It had not be updated since it was built in 1989. I updated everything in the home.

What was the outcome?

Home appraised for $150,000 and is not rented for $1200 a month.

Lessons learned? Challenges?

Do not pay a contractor upfront and always get a contract signed.

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

Josh Frye with First Security Bank was my lender and he is amazing.