Buy and hold is a WEALTH builder

[JJ Harris]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Cash invested: $8,000
Sale price: $135,000

Buy and hold rental. Sold at the 6 year mark.

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

Attractive purchase prices in my area versus rental rates. I own a property management company and feel confident I can operate these types of properties effectively.

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

Drive by FSBO sign in yard. Called and negotiated a cash-quick close deal.

How did you finance this deal?

Cash purchase and the 50%ltv csh out refi.

How did you add value to the deal?

Leased the home for 6 years with below normal vacancy. Home was occupied all except 3 month the entire purchase to sell cycle. I owner financed the home at sell at current market rates.

What was the outcome?

positive cashflow and increased value plus debt retirement and owner financing yield add up to great profit for a 6 year buy and hold.