2nd Rental - Buy & Hold

[Zachary Cummings]

Investment Info:

Single-family residence buy & hold investment in Lansing.

Purchase price: $65,000
Cash invested: $21,029

2nd SFR purchased. Needed about $5k in renovations.

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

This is right around the corner from my other property and with a little bit of work can rent this one out for nice cash flow as well.

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

I found this deal through my agent Jamie Fox. This was an estate sale and we low balled at first at 45k. They came back and said there were over 10 offers and to come back with best and final. So we came back at 65k because we knew what the property was worth (appraised at 70k), and they accepted, after inspections got 2% in sellers credits to go toward improvements.

How did you finance this deal?

Conventional

How did you add value to the deal?

we added about 5k in renovations for items that needed done but that would also add value and maximize the rent

What was the outcome?

we are renting out for nice cash flow

Lessons learned? Challenges?

ALWAYS have reserves for your properties as you do not know what will come up.