Third Door Done and on to the next!

[Adri Jusczak]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $92,900
Cash invested: $24,000

Closed on my 3rd door! Typically I've been doing the BRRRR method. This property didn't need work, but I was still able to make the numbers work for my portfolio as a long term rental. 19% CoC ROI, 10% cap rate.

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

I had a goal of buying 4 doors this year, it was April and kept striking out on all of my offers. I was able to run the numbers and get it under contract within 5 hours of it being on the market. It's a clean, updated house. Being an out of state investor, it seemed like a great fit!

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

I found the deal on the MLS. My realtor worked fast to call the listing agent. The seller didn't want to go back and forth on negotiations with several people, so we submitted an asking price offer quickly and won the deal.

How did you finance this deal?

I'm using a commercial loan under my LLC with a local bank. A 25 year 5/1 ARM. I plan on doing a portfolio loan in 5 years to get my doors from this year under one loan and have a nice refi check.

How did you add value to the deal?

I'm doing some minor cosmetic work to the house- fixing a few little things. It doesn't need much!

What was the outcome?

Adding another property to my portfolio, making my CoC ROI over $1,000 total!