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Updated about 2 years ago on . Most recent reply
Landed our first Investment Property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $95,000
Cash invested: $15,000
After hitting many bumps along the road, we landed our first investment property, out of state!
How did you find this deal and how did you negotiate it?
We found the house on Zillow. Our Agent Steve helped us negotiate the house down from the $110,000 it was listed at to $95,000.
How did you add value to the deal?
Interior remodel including new floors, fixing a soft floor, Fixing a wiring issue, and moving the laundry room. We had a new roof negotiated in after inspection as well..
Lessons learned? Challenges?
Always have backup plans in place for financing.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, Stephen DiJulius was amazing throughout the whole process! Being local to the area and an investor himself made it so he had many recommendations for us as we progressed through the purchase and rehab process.
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
OK. I'm trying to understand the math here...which is very confusing. I'm making a few assumptions here based on the limited info given above. Here goes:
1 - The PP = $95k
2 - You didn't put in a Down Payment, because that would involve cash and the ...
3 - Cash invested = $15k, which would barely cover the cost of the "new floors, soft floor fix, fixing a wiring issue, and moving the lndry room.
4 - Not sure where the "new roof" cost falls here. When you say "negotiated in" I'm assuming the roof was replaced by the seller without increasing the PP beyond $95k.
Is that all correct?
Also, if this is a hold, what are the projected monthly expenses (taxes, ins), mortgage payment and rent?...which will generate your monthly Cash Flow?
The statement that has me both stumped and concerned is under the "Lessons Learned" question, when you answer it with the statement, "Always have backup plans in place for financing". What does that mean, and how does that apply here?