Single Family Cash Purchase (hedge against recession)

[Jason Coleman]

Investment Info:

Other buy & hold investment.

Purchase price: $105,000
Cash invested: $110,000

Purchased as part of a 6 unit package deal. Bought this one in cash to make the whole portfolio "refi-able" once we renovate the other units. Basically I am hedging my bets on interest rates and decided to buy this last one in cash in order to increase our chances of being able to refinance and still cashflow next year. We will eventually (3-4 years) tear down this property and build a multifamily complex on the land.

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

The development potential

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

Asked the seller "what else do you have?" ; )

How did you finance this deal?

Cash

How did you add value to the deal?

It was a solid cashflow play even with a conventional loan. Since we own it outright that gives us more flexibility on exit strategy if needed.

What was the outcome?

Buy, Hold, Teardown

Lessons learned? Challenges?

I always ask the property owner if they have any other properties they might be interested in selling.

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

I am an agent. I hired myself to represent myself which was mutually beneficial to me, myself, and I ; )