2nd Deal 1st Buy Hold Rental

[Chris Momongan]

Investment Info:

2b/1b 880sqft SFH buy hold rental

Purchase price: 89k

In a part of lower end part of town that cash flows in Augusta, GA. Near military base and medical district. I wouldn't live on this side of town necessarily but should yield 900-1k rent. Found through MLS with agent

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

1% rule. Will cash flow $250-450/month after expenses. COC 8.5%

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

I offered asking price of 89k but during due diligence found out it did not have central air.  Got a quote to add ducts and A/C for 8.5k.  Asked to lower to 80.5k

How did you finance this deal?

My wife qualified for a bank investment loan with 25% down.  We pay cash for rehab 31k.  All in for 54k.  Wish it was less but it is what it is.

How did you add value to the deal?

New roof shingles, paint exterior and interior, replaced old carpet with LVP throughout, new kitchen cabinets and countertops, new exterior siding, reglazed tub and tiles in bath, new bathroom vanity, installed new ductwork and HVAC.

What was the outcome?

Still finalizing deal.  Close in 2 weeks

Lessons learned? Challenges?

Still in the process. Learning how to communicate with different contractors and get bids. Learning the market in Augusta. Unable to get anything in the 70-75% rule. Mostly 80-85%. Wanted a BRRRR property but will be happy to cash flow long term and use home equity credit line to buy next property.