Buy and Hold in Williamsburg, VA

[Helen Lowery]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $125,000
Cash invested: $20,000

This home is in a great location! Within a mile of the College of William and Mary, Colonial Williamsburg, and Williamsburg's transportation center (Amtrack/buses). Because of this, we are able to achieve higher than average rents and the property appraises well.

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

Because of its location, there is a possibility that it will BRRR.

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

I found this on the MLS. I am a realtor, so that really helps when looking for deals... I called on the listing within an hour or two of it being made public. I submitted the offer (full price) same day, remained flexible in the negotiations and next day we were under contract.

How did you finance this deal?

My partner provided financing using a HELOC on which we pay 6% interest.

How did you add value to the deal?

I converted what was an enclosed porch into a laundry room that was heated and cooled adding an additional 140 square feet. I also converted the outdated baseboard oil heat to a new HVAC system. We repaired water damaged joists and subfloors in the kitchen and bath, new lvp throughout, new paint throughout, and new kitchen cabinets and countertops, and new bathroom.

What was the outcome?

At month 6, I had a year long lease for $2200 a month to three college students and their co-signers. I have just applied for re-financing and am awaiting the outcome of the appraisal. I am hopeful it will BRRR, but I'm prepared to leave some money in the deal.

Lessons learned? Challenges?

There are so many lessons to learn (and I suppose sometimes re-learn) with each deal. Something that I wish BP would talk about more is the importance of accounting. I find Quickbooks to be too expensive because I have 3 LLCs and my Real Estate Business. Quickbooks requires me to pay for separate accounts for each. I am not ready yet to hire an accountant (although I am considering it). What has been REALLY helpful is just keeping a simple ledger in excel.

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

YES of course! Unless you have bought and sold numerous properties, I would NEVER recommend trying to navigate a transaction without a real estate agent. So many reasons why... They have access to the contracts and addendums. They know the steps to the transaction and how to navigate them (what to offer, terms, inspections, how to release from contract if needed, etc). Not to mention access to mls and auction sites. Find one that also invests. Other must-haves: title/escrow, contractors