Investment Info:
Single-family residence buy & hold investment.
Purchase price: $136,000
Purchased a single family home.
Currently converting street level basement to an apartment. RM1 Zoning.
What made you interested in investing in this type of deal?
I wanted my primary residence to be a cash flowing property, but did not want a traditional apartment unit for myself.
How did you find this deal and how did you negotiate it?
I created a winning strategy for myself with the owner who wanted a quick sale. Owner paid all closing costs and a listing commission to the company. I came to the table with only $1,200.
How did you finance this deal?
FHA
How did you add value to the deal?
I took note of the multifamily zoning and massive storage area and knew I could create two streams of income from the basement level. I gained $60,000 in equity in less than 2 years, rent the garage out for storage and am currently adding a basement level apartment.
What was the outcome?
After the apartment is finished, the basement will be generating $1,400/month. After a fresh appraisal, that should push my value up by at least another $50,000.
Lessons learned? Challenges?
Avoid companies with a fleet of nice trucks, matching uniforms and paid employee benefits lol. The tradesmen/women who come in old station wagons are probably just as qualified and will save you tens of thousands.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes.
