Adding an apartment to a Single Family home.

[Christopher David Harris]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $216,000
Cash invested: $25,000

Bought a Single Family, and put in a small apartment in the basement to cover living expenses.

Pictures attached are before and afters of the Kitchens. One of the Basement Bedrooms was turned into a fully functional Kitchen(ette).

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

There are no other options for my price range available in my area

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

For sale by owner, listed on Zillow. We offered Full Price at $225,000 and the appraisal came in at $216,000 so they took the appraised price.

How did you finance this deal?

5% Down Conventional, 6 months in I Refinanced out of the PMI.

How did you add value to the deal?

I remodeled both the upstairs and downstairs to add an apartment which acts as a rental unit

What was the outcome?

We build $100,000 worth of equity into the property and my mortgage is paid every month by the tenants.

Lessons learned? Challenges?

Inspections inspections inspections.
We had almost everything wrong with the house, and we skipped the inspection.
ISSUES:
-Water pressure regulator was shot and was at 160psi for months. A lot of the valves were replaced, toilets all replaced etc.. everything was bad that we found.
-Roof Leak
-Water Drainage issues
-Clay Soil
Luckily I have access to everything I need for free or very cheap, including a plumber friend who did all the plumbing work for free.