Second investment property

[Scott Ritch]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $112,000
Cash invested: $25,900

Single story Townhouse, 2/2 w/ 1063 sq ft. When we purchased the property the rent was $650. We rehabbed it in January of 2021 for $26,225 and cash-out up to 75% LTV. Currently rented for $1400 (market is actually up $200 since then). We have $18k total left in the property. Pure cash flow is $328 monthly which equals 21% return on money.

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

Little out of pocket.

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

I knew the agent. He knew we were looking and we were able to negotiate it off market.

How did you finance this deal?

Conventional, 20% down, 30 yr fixed

How did you add value to the deal?

Original tenant stayed stayed a full year, so no additional money was needed up front. We rehabbed it after she moved out.

What was the outcome?

We received highest rents in the neighborhood at that time.

Lessons learned? Challenges?

the Covid shut down happened 2 weeks after purchasing it, which was a little nerve racking, but no challenges on this property.

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

Yes, and we are also agents.