Long term rental property with a passive investor partner

[Emily And Eric Erickson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $226,000
Cash invested: $19,000

3 bedroom, 2 bath house that was an eviction and previous landlord just wanted out. Bought as is with a cash partner, cleaned it out, put a new roof on it, fixed the AC, replaced and cleaned carpets, new water heater and got it rented out for $2,085 per month on a lease option basis.
Cash investor is completely passive, I take all of the calls and did all of the above.
Will be a great investment for a long time!

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

It is the model that fits my abilities the best

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

Found the deal on MLS. Beat out another investor who wanted to flip it and couldn't pay as high a price. Price in a long term deal is the last thing to worry about, it is all about the cash flow

How did you finance this deal?

Cash from a passive investor

How did you add value to the deal?

Found the deal, saw the potential (listing agent didn't even post any pictures because it was a MESS!), negotiated the terms that was below list price, got a free roof out of the seller after inspection, did all of the repairs, marketed it when ready to potential renters, qualified a tenant, moved them in!

What was the outcome?

Cash flowing property in under 2 months

Lessons learned? Challenges?

Working with cash investors is GREAT!

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

I represented the cash investor as the buyer's agent.