Buy and Hold/Bethany, Oklahoma

[Lara White]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $110,000
Cash invested: $26,000

Super cute little rental in a great area. 2 bedroom, 1 bath. Great backyard. Fully fenced in, with a garage and storm shelter. Projected rent is around $1000 (2 bedroom/1 bathroom).

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

I knew what a great area, and cute little house this was. Once the prior deal fell through I took my husband over to see it, and he agreed with me. So we put an offer in on it.

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

I had it under contract with a client, who is a newbie investor and she just talked herself out of it. So I bought it!

How did you finance this deal?

Commercial portfolio loan with my local banker. 75% down payment, 20 yr amort. 6.5% PITI will be about $780/month. So it won't be a huge cash flow, only about $200/month. But if I had gone with a 30 year/20% down payment loan, it would have be a lot better - so it's all in perspective!!

How did you add value to the deal?

Needs VERY little work, $7000 - and only that much because I'm having 2 enormous trees cut down in the back yard ($4000). I had a sewer clean-out installed ($650). Electrical upgrade ($2000). And will do little odds and ends, but pretty rent ready!

What was the outcome?

Appraised at $120,000! So I have an instant $10,000 equity.

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

I represented myself.