First Property purchased prior to housing crash- still a win

[Melissa Marney]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $375,000
Cash invested: $30,000

Converted property to a 2-1 and refinanced years back to be paid off in four years to pay for my daughter's college and be a cash flowing investment following that. This goes to show if you hold real estate long enough, it all works out. This purchase was prior to the housing crash, and I am so glad I stuck with it. It is always best to pivot versus walk away. All challenges have answers if you think outside of the box.

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

It was originally a house hack with a second unit converted out of the garage and then full rental property when I moved to Denver.

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

MLS and negotiated with my agent.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

Remodeled complete primary property, backyard and converted the garage to a second unit.

What was the outcome?

Currently valued at mid $700,000 and will be paid in full in four years.

Lessons learned? Challenges?

I put solar panels and a tankless water heater to minimize utilities since they are not truly split. Added laundry to both units to increase rents and have parking available for both units.

Challenges- Originally rented as I pay utilities and eventually transitioned out of that over a year ago. Always have the tenant pay utilities.

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

Yes- Agent in San Diego, and traditional lender.