By-and-hold turned into a Long flip

[Henry Paschall]

Investment Info:

Single-family residence buy & hold investment in West Plains.

Purchase price: $329,000
Cash invested: $32,900
Sale price: $465,000

We purchased 6 single family homes on 1 street. I would have to say that our biggest help in this purchase was our lender Wood & Houston Bank in West Plains, Mo they are great! This property has some growing pains involved, we had to do a lot of repairs and we inherited some awful tenants so we took a big loss on these properties so far. But we put things in place to turn these properties around and learned how to do evictions. This year will hopefully be a profitable year with about 500.00 a month so far.

**Update** We ended up getting a cash offer of 465,000.00 and sold this property with a profit of: $63,721.40
Total Cash into Deal plus holding costs: 72,278.60
SOLD for: 465,000
Profit: 63,721.40

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

I love real estate!

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

I found it through connecting with an amazing realtor. Did not negotiate for it I knew it would be a good deal for long term buy and hold. Then it turned out to be a great flip.

How did you finance this deal?

Commercial Loan

How did you add value to the deal?

Yes, we upgraded it from builder grade by adding nice LPV flooring, changing the paint color and landscaping.

What was the outcome?

We had a cash flowing asset for 2 years and sold it for a profit. Overall this was a good deal.

Lessons learned? Challenges?

Tenants, I had issues with tenants that where already in the property when I purchased it. I went through 1 eviction, 2 cash for keys on this deal.

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

Yes, if you are investing in this area you must use Pamela Cochran.