*Update* Historical Disc. Flip - 1st Flip Ever Turned into 1% Rental

I realized I have not updated this project's progress until now. In February 2019, the contractor and I were wrapping up the project and looking to list the house. We were also approaching the maturity date on the hard money loan we had, coming due in June 2019. We were able to list the house in March, had an accepted offer of $185K (would have lost $5K) but the buyer backed out due to the old, asbestos roof. June approached rapidly and I was able to work with my credit-union (who finances my other SFR) who got me a 25 year, 5 yr balloon, loan @ 5.25%, business loan. My loan is for $135,000 (hard money loan + contractor payoff, leaving my $50K investment in). The home assessed for $205K with the city. The credit union was able to use software to virtually assess the home, which came in at $185K. So I was able to have a loan of 73% leverage. I think the credit union liked that I was coming with 27% down. Part of this $135 ($15K) was for a brand new roof + asbestos abatement costs. So I was able to walk away with a brand new roof after the refi. I used a new contractor relationship for the roof; he appreciated the business. This also allowed me to use this new contractor to (1) give him business, (2) test out the relationship even further, (3) give each other confidence that we can both hold up our ends of the deal so future jobs can go smooth. 

With this refinance of $135K, I tasked property management to fill the vacancy. They were able to sign a $1,400/mo 2 year lease. I did not know they were going to go for the 2 year lease (my fault) but I was happy that they were committing for a longer term. I had issues after the second month as they stopped paying and left a water leak run for 7-8 days. After address this issue, they have been still off-and-on with payment tardiness. Overall, I am happy that they are happy in the home, now we just have to work on timeliness. 

Lessons Learned: 

1 - Don't procrastinate finding a refinance! It was a 'flip' at first, but turned into a long-term hold

2 - Pull out extra money for any repairs. This only increased my home value (now taxed at $221K). Allowed for higher depreciation during tax time.

3 - It's okay to leave $50K in the deal. It's a horrible CoC return but, thankfully, with RE we get the tax deductions, appreciation, and debt pay-down as well!

4 - Work with your previous lenders. They were instantly ready to help me.