Updated about 2 years ago on . Most recent reply
5 Raleigh Lane, Alexander, AR
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $220,000
Cash invested: $55,000
3 bedroom, 2 bathroom, 2 car garage, and nearly 10 sq. ft. lot.
What made you interested in investing in this type of deal?
1st turnkey deal to make it easier to grow my portfolio.
How did you find this deal and how did you negotiate it?
REI Nation. Yes, it costs a lot to go with REI Nation, and the cash flow is low, but they have an excellent reputation. Plus, they offered $5,000 in property management concessions. I can refinance this deal to increase cash flow and help with property management costs when the $5,000 is gone.
How did you finance this deal?
30-year mortgage
How did you add value to the deal?
25% down payment.
What was the outcome?
So far, so good. I'm happy with this purchase and know that the rent and cash flow will increase over time. Plus, the return will grow with appreciation and principal paydown from rent.
Lessons learned? Challenges?
I learned to ask a lot of questions and to ask for concessions. I need to consider other options to turnkey deals so I can cash flow more. The margins are so small from turnkey deals, but REI Nation makes these deals easy to complete.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I'm impressed with REI Nation, but you must know you'll pay much more for properties. However, they do a great job with the rehab work, and their property management is excellent. Cash flow is low or non-existent with turnkey deals, but they make completing deals fast and easy. If you're just starting and don't have time to deal with a lot of potential issues, turnkey is a great way to get the ball rolling.
