Four Identical Single Family Homes in Western KY

[Ethan Myres]

Investment Info:

Other buy & hold investment.

Purchase price: $200,000

This investment includes four fairly identical single family homes right next to each other (3 bed, 1 bath, ~1040sqft) that currently rent for $550/month. Each unit has the potential to rent for approximately $800 per month. I inherited the tenants with the purchase of the properties. As tenancy turns over, I will raise rents accordingly.

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

Who wouldn't jump at the ability to purchase four homes for $50,000 a piece?

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

Previous owners approached the real estate firm I work for to sell all of their rental portfolio.

How did you finance this deal?

I refinanced another rental for the downpayment, and financed the remainder under a commercial real estate loan.

Lessons learned? Challenges?

When you buy several homes, it is considered a commercial transaction. Commercial transactions do not require the seller to disclose faults in the property condition, so over the past few months, I have been taking care of a significant amount of deferred maintenance, including one property that needs the entire floor system replaced ( joists, sill plate, and main beam). I always suggest having a property inspection on any property you plan on purchasing!

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

Yes! Call me if you are looking to sell or invest in the Owensboro KY area! 270-499-4948