Terra Padgett Rental Deal

 

Terra Padgett Rental Deal

TAG Capital Holdings in Houston, TX
Terra Padgett with Gene Padgett

We purchased this condo unit all cash. We put about $3,500 into it for repairs. It was in decent shape and didn't require a lot. Once we placed a tenant it began cash flowing. However being a condo unit on the 1st floor, we began having issues with the slumlord who owned the unit directly above ours. His unit was poorly maintained & began causing constant water leaks into our unit whenever his tenant used the shower or flushed the toilet. We repaired water damage on more than one occasion. Also the association dues increased by double digit percents twice in 1.5 years of our ownership. Lastly, our tenant just stopped paying rent the final 2 months of their lease so we had to non-renew them. The RE market was hot & we decided to sell this problem child. We made about 40% ROI in 1.5 years.

Rental Details

Property City: Houston
Purchase Price: $52,000

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

One of the takeaways we got from our FB education was about evaluating your rentals ever so often. If an asset isn't performing as expected, then we needed to revise our strategy on handling the property. We decided to divest this asset and take advantage of the increased market value by selling at a nice gain. Then we're turning around and deploying the profits into a single family home. The property cash flowed for a majority of the time, but the real win was in the market appreciation profit center.