Rental property in new market

[Jennifer Casey Kime]

Investment Info:

Single-family residence buy & hold investment in Bolivar.

Purchase price: $125,000
Cash invested: $10,000

Contributors:
Nick Kime

This house was move in ready with only a few cosmetic issue and yard clean up needed. We wanted to try branching out of the travel nurse niche. We visit Bolivar often so the location was still good. The Bolivar market is smaller than Springfield but the rules are less restrictive and there are fewer short term rental options.

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

We wanted to find something outside of the travel nurse niche. There is a hospital in Bolivar so travel nurses may still be interested. The house is also 2 blocks from the local college.

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

After the last deal we decided to tell more friends and family we were interested in buying real estate. One of the friends mentioned that they knew someone in Bolivar that was selling and that started this deal.

How did you finance this deal?

After refinancing our previous 2 investment properties and primary residence we were able to pay cash for this property.

How did you add value to the deal?

The seller had 30 properties that they were trying to sell for a 1031 exchange. This property was unable to be included because the tenant was unwilling to leave the property. After removing the tenant the seller had short window to complete the purchase. We were able to close quickly by paying cash.

What was the outcome?

The house was definitely slower to rent than the Springfield properties. It did require a lot less work though and was basically turn key. It's rented now and doing pretty good.