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Updated about 2 years ago, 12/14/2022
Rental purchased to move tenants from one home to another
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $422,500
Cash invested: $84,500
Single family rental in gated golf course community in Jacksonville, FL. Bought to move great tenants from one rental house that we wanted to take over and remodel for ourselves, to another in the same neighborhood that they wanted to remain in.
What made you interested in investing in this type of deal?
I have great tenants that were renting a home that we wanted to transition to a ‘home base’ for my family. They wanted to keep living in the same neighborhood and wanted to sign a long term lease agreement. A home came up for sale in the neighborhood and I jumped at the opportunity to get them into a good home in the same location. It has been a win-win for both sides at this point.
How did you find this deal and how did you negotiate it?
Zillow, as soon as it popped up I reached out to the home owners and got my realtor on the deal. We had to pay over asking but it fit the numbers I wanted to achieve so I was fine with that. Win for the sellers, for our tenants and myself.
How did you finance this deal?
Conventional - needed an escalator clause to ensure I got the deal.
How did you add value to the deal?
Market appreciation, improved some wear in the home and improved the pool area.
What was the outcome?
Good tenants in a good home in a great neighborhood.
Lessons learned? Challenges?
I haven’t done a ton of deals but I had enough that I attacked this one and made sure I got the property. When the numbers fit, you know the area and believe in the deal - make it happen.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Walter Collins was my realtor - Exit 1 Stop Realty is my realtor and did a great job.
George Sitgreaves - Mottomortgage did the loan and has been elite in making sure I get the financing I need and is creative with giving options.