First Out-of-State Single Family Rental

[Garret Jones]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $210,000
Cash invested: $67,000

Purchased in good school district, distressed, in the winter, and updated it to market level. Almost renting at the 1% rule (.95%).

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

To learn the process, invest out-of-state where it was more affordable, and to invest in the city I grew up in - though I don't live there anymore.

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

This deal was found on the MLS. Originally, I asked for list price and owner financing. They rejected it. After two weeks, they asked for conventional financing and $20k off the list price.

How did you finance this deal?

A passive partner brought cash for the down payment and some rehab with a HELOC on their residence. I paid for any additional rehab that was above the estimated amount.

How did you add value to the deal?

Repaired water damage, took out dog odor, replaced all floors, water heater, radon mitigation, finished the washer/dryer/storage room, Keypad lock, Ring doorbell, all new paint, doorknobs, repaired deck.

What was the outcome?

So far, it cashflows about $225/month per investor, after saving for repairs, vacancy, cap ex, and paying the HELOC each month. The goal is to BRRRR and refi in a few months to pay off the HELOC.

Lessons learned? Challenges?

Challenges were unforeseen water damage and delays from contractor. Patience, processing with others, and continued communication with contractors helped complete the project. Screening tenants with direct questions gave me confidence to listen and discern each tenant confidently.

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

Carlton Shaffer was an excellent Agent in Columbus.

[Joshua Janus]

This is an awesome BRRRR in Columbus, congratulations! Love to see it.