Chattanooga SFR Buy and Hold

[Brian Moore]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $193,000
Cash invested: $63,000

Contributors:
Danielle Roos

This was my first SFR in awhile because I've been purchasing mostly duplexes. Looking forward to the next one!

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

I have a colleague who relayed his successes with $200k houses that rent for $2,000 and tend to have great long term tenants and better appreciation than duplexes, so I thought I'd give it a shot. It was also a 5 bedroom which I feel will help land a very long term tenant.

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

This was my first purchase from a wholesaler (shout out to Hawthorne Holdings!) and I look forward to many more.

How did you finance this deal?

Conventional financing 80/20 LTV at 4.25%. I've worked with my lender on 10+ loans and he assured me we could close in 20 days so we were able to accommodate the seller's timeline.

How did you add value to the deal?

The property needed mostly cosmetic rehab, but I like to go overboard with remodeling when I purchase buy and hold so that I get immediate benefits of top dollar rent and little maintenance for the first few years. I spent $25K in all

What was the outcome?

Rented for $2500/month with cashflow of $1060

Lessons learned? Challenges?

Same challenges with getting bids and contractors started ASAP, but I'm happy with the speed at which we got this one to market. I'm also caught in limbo with $63K in the deal which I wanted to BRRRR out, but interest rates don't seem to be cooperating. I don't need immediate liquidity so I'm going to hold off on the cash out refi. Current appraisal is likely $240-260K.

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

Danielle Roos with Hawthorne Holdings wholesalers and Highlands Mortgage out of Texas for conventional loans.