Buy & Hold Investment - Hilton Head Island!

[Ryan Bunting]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $575,000
Cash invested: $40,000

The "Top 4" Wealth Generators:

1. Appreciation Value Buy - (instantly valued higher than my purchase price) - VERY RARE FOR HILTON HEAD!
2. Cash Flow - Have the ability to cover my mortgage with extra cash in my pocket. One of the highest demand areas on HHI for renters both short & long term.
3. Tax Benefits - Can deduct most of my mortgage interest while building wealth.
4. Loan Paydown/Equity Growth - Grow equity for "free!"

I spent 5+ Years in Rental Management before Real Estate.

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

The value is continuing to increase on Hilton Head, but with buyers sitting more on the sidelines with interest rates, deals are being done in this market that can only be done right now. Negotiations are on the table, and even though a interest rate of 7%+ rate is hard to initially stomach it made sense. Buy now, instant appreciation with value continuing to rise, cover my expenses, and refinance down the line when the rates do drop, having already secured myself a valuable property!

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

I found it through MLS. It came active on a Thursday, and I was the first agent in the door to preview it. Knowing how quickly great deals are bought in this market, speed wins, and after a follow-up showing the next morning, I put in an offer on Friday. I knew other agents, customers and clients, would also see the potential in this deal, so I had to come in strong with a clean contract. Even at a full listing price it was still worth 50-75k more! Beat (3) other offers the same day.