Buying Your FIRST Rental Property | From Rehab To Rental

TL;DR

Two investors purchase a house for $8,000 in Maple Heights, Ohio and plan to rehab it to rent at a higher price.

Transcript

hi I'm Paul this is Andrew my business partner we're here in Maple Heights Ohio we just bought this house here the other day on Monday and we're about ready to rehab it we bought it for $8,000 and I'm and joint until a story about how we got it yeah so sometimes you hunt homes out you can find him on the MLS you can find him online through other pe... Read More

Key Insights

• 📲 Finding underpriced properties through connections and phone calls can lead to great investment opportunities.
• 🍉 Investing in rental properties can provide recurring income and long-term returns.
• 🤣 Avoiding carpet and using more durable flooring options can save money on replacement costs.
• 😥 Understanding local ordinances and laws, such as point-of-sale requirements, is crucial for investors.
• 👻 Building a buffer in the budget allows for unexpected expenses and ensures a positive return on investment.
• 🤝 Finding deals in less glamorous markets can still be profitable and less competitive.
• 🗯️ Real estate investing requires finding the right balance between cosmetic improvements and necessary structural repairs.

Questions & Answers

Q: How did the investors find this house?

The investors received a phone call from someone who knew they were in the business, offering them the opportunity to buy the house.

Q: Do they plan to flip the house instead of renting it?

No, they chose to rent the house since the market in the area is good for rentals, and they want recurring income.

Q: Why do they avoid using carpet in the house?

They prefer luxury vinyl planks as they are more resistant to wear and tear caused by tenants. Carpet often needs frequent replacement.

Q: What additional expenses do they need to consider besides the rehab budget?

They need to set aside funds for permits, point-of-sale requirements, and potential expenses related to the furnace, hot water tank, and electric panel.

Summary & Key Takeaways

• The investors bought the house for $8,000, which was underpriced due to the previous owner's low rent.

• They plan to invest $35,000 in rehabilitating the house, including a new kitchen, two bathrooms, new roof, and landscaping.

• After the rehab, they expect to rent the house for $1,100, compared to the previous rent of $700.