Buy and Hold Single Family Home

[Jeremy Porter]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $417,000
Cash invested: $21,000

I purchased this property July 27, 2022 as my primary residence. Moved out middle of May, 2023. I cleaned the carpets, patched the holes, painted and had the house cleaned. We had it rented in 10 days for $100 more per month then the highest comp. The tenants moved in at the end of May. It is a break even investment at this point but we are going to raise the rent if/when they renew. If the property appreciates 3% per year, we will make $12,000 per year.

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

It fit my family and we liked the layout.

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

My wife and I are both licensed Realtors. We found the community on the MLS. We registered with the sales person and he called us when it fell through.

How did you finance this deal?

FHA financing.

How did you add value to the deal?

We added a coffee bar. The kitchen didn't have a lot of cabinets. So we installed another 7 cabinets and made a beautiful coffee bar.

What was the outcome?

$2,600 per month. Which is enough to pay the HOA, mortgage, taxes and PMI. The principal is being paid down over $700 per month.

Lessons learned? Challenges?

It was easier than I thought it was gonna be. It was a lot of work to move out, patch the holes, paint, clean the carpets and get the house cleaned.

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

My wife is fantastic. Her name is Jenese Porter and the lender was Robert Mangiaracina