New(er) buy and hold

[Emma Hustis]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $105,000
Cash invested: $4,000

This is a house I found off market, the seller gave me a great price because we agreed to keep the current tenants in place (two 80 something year old sisters were living in the house).

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

I found this deal off market using direct mail. The seller called me and told me she wanted to sell but she didn't want the two old ladies to get kicked out. I told her we could leave them in, but she would need to cut me a deal on the house. We came to an agreement on price, and closed about 3 weeks later.

How did you finance this deal?

We used a private money lender to finance this deal. He placed a lien on another rental property we own (which we have about $100,000 equity in) so we didn't have to bring a down payment to the table. Just closing costs, and the 1% charged up front.