First property in the books!

[Glenn Gruschow]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $283,000
Cash invested: $56,000

2BR 2.5 BA townhouse near downtown Athens, GA and the University of Georgia.

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

Great location in downtown Athens, GA near the University of Georgia. Wanted to start exploring student housing and UGA is experiencing a lot of need for off-campus housing.

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

Found this on the MLS and worked with a local agent.

How did you finance this deal?

Traditional financing (20% down, 30 year loan)

How did you add value to the deal?

Property was in pretty good shape but added a new water heater (negotiated a credit for this as part of due dilligence). Also furnished the property with some extra used furniture we had in an attempt to attract student renters who may not have furniture or want to deal with the time and expense to furnish a place.   Experimenting to see if this will be a way to differentiate ourselves from other properties.

What was the outcome?

Accepting applications and a lot of interest. Should have it rented shortly.

Lessons learned? Challenges?

Tough to find a good deal these days. This one should cash flow (barely) but would have preferred to find one that would have allowed for some renovations and a more competitive offer price (had to go over asking on this one which isn't ideal as it narrowed my cash flow potential). But a good one to start with.

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

Scott Talley from 5 Market Realty in Athens is excellent. Very informed on the local market and provided a lot of good advice as to what to look for. Scott is also an investor in Athens and will be a good partner to help analyze future opportunities.