SFR Buy-n-hold in Indiana

[Caleb Drake]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $43,500
Cash invested: $12,000

This was an out-of-state MLS purchase SFR that needed very little work. Total purchase cash and rehab in the home is around $20k.

The home rents for $895/mo and cash flows around $350/mo.

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

I invest with a business partner in an LLC but wanted to kickstart my own personal portfolio with something easy.

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

MLS—paid too much but it cashflows

How did you finance this deal?

Conventional loan from a local bank.

How did you add value to the deal?

Added a central air and a new furnace. New floors and other small repairs to the exterior.

What was the outcome?

Still need to evaluate if I can pull money out of the deal and refi into commercial loans.

Lessons learned? Challenges?

Negotiate harder for deals on the MLS post-inspection.

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

No