Conroe Rental Home nets $750 per month cash flow

[Rick Raanes]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $230,000
Cash invested: $34,000

4 bedroom, 2 1/2 bath home built in 1971. The Interior has been recently updated with new flooring throughout the whole house, new kitchen, baths, and lighting. We have a $750 per month cash flow.

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

After getting divorced, I needed to focus more on my retirement plan. The Goal is 10 personal rental properties and this one fit the growth plan. Rising area and solid home with upside on rental income.

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

I helped this seller purchase the property several years ago. They called and asked about listing the property so they could move to another area to be closer to the grandkids. It was the same time as my divorce. I asked if I could buy it and we agreed on a price that helped them get their next home. It was a win-win for sure.

How did you finance this deal?

Bank Financing. Since I didn't have another home loan, I was able to secure traditional financing as an owner-occupant.

How did you add value to the deal?

I did not charge them a real estate commission and was able to net them a slightly higher net than the traditional sales route. They also did not have to do any home improvements to the home, making the sale much easier.

What was the outcome?

We were able to get a better price on the property by purchasing off market.

Lessons learned? Challenges?

I would love to do more of these types of purchases from past clients.

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

I am a real estate professional.