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Updated almost 2 years ago,
First out of state investment journey back in 2021 has been cash flowing positive
Investment Info:
Single-family residence buy & hold investment in Sunburst.
Purchase price: $148,000
Cash invested: $33,000
For someone with zero background in real estate investing - rental investment seemed like a far fetch pipe dream specifically given that the 1% rule (that I was interested in) seemed implausible from where I was located - Sunny NorCal. That’s when I stumbled upon out of state investment opportunities - it’s like finding mining for iron ore in the murky soil. You really don’t know what you are presented with until, you’ve fully processed it.
And that’s exactly how it turned out !
What made you interested in investing in this type of deal?
Possibilities looked limitless in terms of the gross rents and growth potential. I’m a numbers person and it’s math that interests me in a deal, does the numbers look right - have you stress tested your system , is it foolproof ? Maybe / maybe not - what eventually mattered is that I was willing to take a calculated risk and diversify into a class of investment that I’ve always believed in.
How did you find this deal and how did you negotiate it?
This is we’re it seems
How did you add value to the deal?
There was a legacy tenant who was finding it hard to pay rents on time. We worked with her for a year with assistance programs and when it ran out - she was devastated. We gave her some time to continue to stay until she was to able to finally find a place that fit her budget. In the end this is someone’s home (for which I only see myself as a coordinator) - this is where people find solace and safety in, so it’s always people over profits.
But when she left we had a quite a bit of rehab!
What was the outcome?
The rehab was great - doing the right amount of updates, fitting the budget. And the property was listed for less than a week when we found our first lead and it was fantastic - they are a great family that threat the home as their own and it’s been great ver since