Too Many Pines> 3bd 2ba , Long Term Rental

[Jonathan Small]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $82,000
Cash invested: $20,000

Contributors:
Jake Peterman

This is a single family house. 3bd, 2ba. I purchased it because it is close to a college and also in a good area. I put down 20% and financed 80%. My down payment came from savings. TI found this property marcusmillichap.com. This property is managed Mercer Hughes Real Estate Group. Market rent is 1,275. This is a long term rental we plan on keeping. Renovations we have completed so far: new roof, landscaping, lvp, hvac, interior paint, kitchen updates, and updated fixtures.

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

This was part of a portfolio. The seller and I developed a good relationship and he helped me to purchase this deal.

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

Marcusmillichap website. I paid the asking price. Seller allowed me to increase the asking price to include a larger seller concession.

How did you finance this deal?

I put down about 20%. The other 80% came from a local community bank.

How did you add value to the deal?

value add includes professional property management, lvp flooring, kitchen updates, paint interior, hvac work, water heater

What was the outcome?

We are keeping this property. We have since refinanced to pull our down payment and equity out of the property. The property still cashflows. We used the equity to purchase other long term rentals.

Lessons learned? Challenges?

We need to keep more reserves for older properties. This property didn't cashflow much, however it was in an excellent neighborhood that gave us about 40k in equity. Buy in good neighboorhoods.

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

Mercer Hughes ( https://www.mercerhughesrealestate.com/), Jake Peterman was my property manager. Guardian Bank was my lender. Trai Gay was my property inspector.