Adding Another Property To The Portfolio

[Paul Novak]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,000
Cash invested: $65,000

4 bedroom 2 bath newly remodeled single family home in Sheboygan Falls. This property is walking distance from River Park and downtown Sheboygan Falls.

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

The property was move in ready and required very little work. It had just been remodeled with all new appliances.

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

I actually found this property in a Facebook post and was able to negotiate it off market with other local investors.

How did you finance this deal?

The financing was traditional 30 year fixed rate mortgage financing.

How did you add value to the deal?

The only value I added was the down payment to make sure the property hits our business cashflow goal.

What was the outcome?

The outcome was getting another property to add to our portfolio that fits our buy box and that we are proud of. We follow the small and mighty strategy and we are only 1-2 more properties away from hitting our goal. At which point we will shift from acquiring more properties in the short term to paying them off.

Lessons learned? Challenges?

The one lesson that I learned is to look out for lead inlet pipes. With this house being a newly flipped property we decided to get a home inspection. We wanted to make sure we didn't look past something being that so much with the property was new. During that inspection we uncovered a lead inlet pipe coming into the property. The cost to replace it was around $10K. We did water testing to verify the water was safe but this is something to look out for with future purchases.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Matt Kapellen from Pleasant View Reality in Plymouth, he has helped us with our primary residence and all of our rentals. Amazing agent!!!

We also worked with Wendy Conto from Bank First as our lender. She has helped us get amazing rates with all of our recent rental properties. She is also someone I would highly recommend.