Third Investment Property

[Kyle Hoppman]

Investment Info:

Single-family residence buy & hold investment in Mount Horeb.

Purchase price: $270,000
Cash invested: $4,115

Just closed on a 2 bed/ 3 bath half duplex in Mt Horeb, Wi which will be my primary home for the next year or two. I used a VA loan with 0% down, was able to negotiate for $10,000 less than asking, and had to bring a total of $4,115 (ernest money, inspections, appraisal, etc.) to closing. By the time I move out and rent this property in approximately two years, I estimate I'll be able to charge about $2300/month. With this monthly rent and a total of 15% being taken out for cap ex, repairs, vacancy, I'll be cash flowing $197/month. I know that may not seem high enough, but with only bringing just over $4,000 to closing, that is a 57.4% COC ROI, which I will happily take.

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

I was living in an apartment while owning two duplexes. I figured it was time to find a place to call my primary home for awhile.

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

Zillow. I negotiated with my realtor.

How did you finance this deal?

VA Loan