Buy and Hold

[Ekundayo Olomo]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $180,000
Cash invested: $20,000

4 bedroom 2 bathroom single family home.

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

I invested in this deal to grow my real estate experience and knowledge.

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

This deal found me, I put out a flyer looking for motivated buyers, and after the seller listed her home but couldn't sell it she called on my flyer and we negotiated a cash price that worked for her and my LLC.

How did you finance this deal?

I utilized personal savings, private money lenders, and David Greene's "The One Brokerage" for a DCSR loan (debt-coverage-service-ratio) to cash out refinance.

How did you add value to the deal?

I did a renovation painting of the interior of the home. Replaced all carpet and added luxury vinyl plank flooring. Updated the bathrooms with new fixtures and hardware (including a new vanity upstairs). Installed a new dishwasher along with a stainless refrigerator and stove. Installed a new privacy fence and exterior doors (front and back).

What was the outcome?

I now have a cash-flowing rental and many new contractor/subcontractor contacts for maintenance and future projects.

Lessons learned? Challenges?

Anticipate 8-12% overage in cost and time to ensure expectations are met. Every deal needs 2-3 solid exit strategies, which should be calculated before making an offer.

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

I would highly recommend The One Brokerage for Non- QM products like the DCSR loan