Selling off my residential portfolio

[Kevin Hoag]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $54,900
Cash invested: $8,235
Sale price: $89,000

Purchase this single family home off of a couple who lived in the home for 20+ years and took great care of the property. Turned into an excellent rental with gross rents of $950 and monthly cash flow of $300+

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

Purchasing residential properties to build a well rounded investment portfolio

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

I found this deal right off the MLS. The listing agent had made a mistake when putting it up for sale so the property sat on the market for sometime before I found it and bought it.

How did you finance this deal?

I purchased this deal with 15% down conventional financing and had the sellers provide 2% closing cost assistance

How did you add value to the deal?

Property was purchase for around 1.8%gross rent/purchase price making it a profitable purchase in a city with stable tenants and good upside appreciation.

What was the outcome?

Sold the property several years later for 89k making enough profit to justify letting it go. Cash today is worth more than cash tomorrow.

Lessons learned? Challenges?

Single family homes can be difficult if you do not have multiple properties. When there is a turn over you start to take a loss out of pocket having to cover your mortgage and holding costs

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

I represented myself as both the real estate agent and the insurance agent