First SFR, 3rd Property

[Gary Harrell]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $58,500
Cash invested: $11,700

2/1 across the street from a rental I already own, and two blocks from the first investment I purchased.

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

This single family home I picked up because I had a former tenant that really needed a place to live. She was a good tenant and I wanted to help her out. My cash flow on the property will be minimal in year 1, but she agreed to bumps in rent in both year two and three to get up to market rate. This is my first single family home.

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

I found this deal on Zillow and I used an agent from the area. The seller had it priced at $78,500, so I put in an offer of $58,500 and they accepted. It appraised at $63,500 without doing anything to it.

How did you finance this deal?

I have a small credit union that allows me to run properties thru my LLC on DSCR loans.

How did you add value to the deal?

I have done a few minor, very minor updates on the inside.

What was the outcome?

Happy as can be!

Lessons learned? Challenges?

There are additional repairs and upgrades I'd like to make, but the tenant really needed to get in so I presented what I had to her and she was thrilled to get it the way it already was.

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

Tiffany Hester was my agent. She works out of Richmond, IN, (almost in OH). She did great work for me, and I'll continue to use her in that region of the state.