I closed on 5 SFR portfolio on February 25th

[Darrell Bratton]

Investment Info:

5 single family homes

Purchase price: $300,000.00

Cash invested: $42,000.00

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

I am growing my portfolio for retirement income, with the 5 year goal of 100 doors.

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

I found this deal through a new realtor that I recently met. She is helping me, in conjunction with the broker. I accepted the deal immediately and then figured out the financing. The portfolio appraised for 50K more than the sales price.

How did you finance this deal?

I used multiple lines of credit to get the 42K. I will use my teaching income and cashflow to pay off the lines of credit ASAP.

How will you add value to the deal?

Only one of the five needed some rehab and the other four have renters already.

What was the outcome?

I am at 26 doors as I have two other portfolio loans with the same community bank.

Lessons learned? Challenges?

My challenge is not having partners and trying to scale on my own, while keeping 30% equity. Also, prices are rising and so are interest rates. It may be time for me to do a 1031 exchange so that I can continue to scale. I have learned that I have to trust my team. My team is my, realtor, broker, banker, property manager, lawyer, and insurance company.