Investment Info:

Single-family residence buy & hold investment.

Purchase price: $570,000
Cash invested: $114,000

I designed and remodeled this home and turned it into a cash-flowing rental.

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

The house had great bones but an odd floor plan, 6 bedrooms and 3 bathrooms, 2 living areas and no laundry room. So I mapped out the old floor plan and turned it into a 5 bed 5 bath plus a laundry room.

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

I searched the San Fernando area with my realtor for over 6 months before finding this deal. It was on the market for a while so I used the seller's motivation to negotiate a deal and transformed the home into a cash flowing rental.

How did you finance this deal?

Traditional bank loan.

How did you add value to the deal?

Remodel, floor plan redesign. House hacked.

What was the outcome?

I generate over $6500 per month in gross rental income. After expenses, I net approximately $3800.

Lessons learned? Challenges?

Challenges was there were various walls that had to be knocked down to achieve the layout of a five bed-five bath home. I learned that sound proofing walls were important in a home with some many bedrooms and that when all the flooring was stripped out, that was the best time to repair the plumbing, even if it costed a little more up front.

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

I worked with Dan Lochhead as my realtor. He was patient and transparent and a very friendly guy.