Long-term rental buy and hold

[Sam Lusey]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $74,900
Cash invested: $25,000

I've been looking to invest in Ohio and/or surrounding states and have been reviewing properties extensively in these areas. This was an off-market property that was suggested to me by a realtor I found in the area. She told me about it before she put the property on the market and got with the current owners and told them about me and what I was looking for.

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

Long-term stable rental income and appreciation. This ended up working out very well because a long-term tenant had just signed a lease a couple of weeks before. The monthly rent is 950 dollars on a 74,900 property.

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

I connected up with a local agent about another property in the area. We worked together for a month and reviewed over 15 properties but none worked out. This one was an off-market property that she informed me of right when it came up.

How did you finance this deal?

Conventional loan - 25 percent down

How did you add value to the deal?

Got an inspection done and negotiated with current owners and got their agreement to handle many points. This included putting in a new water heater, servicing the HVAC and fixing many household items.

What was the outcome?

The property is in a good part of town that is on the outskirts and a popular nook that is always in demand for rental. I wasn't looking to invest in a townhouse originally due to HOA fees that normally make these not the best investments. However, this fee is only for water and sewer and is very reasonable and after all operating expenses, the COC return is 12 percent.