Benefits of buying / living / renting / holding

[Evan Rice]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $641,500
Cash invested: $50,000

We lived in this property for about 2 years then rented it for $4200/month to long term renters. Our timing when we listed for rent could not have been better. We listed for rent in July and were SHOCKED by the amount of rental demand in this specific sub-market. We had to host an open house for renters and ended up renting for $4200 with renters paying for all utilities. Cash flow is ~$1k per month.

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

the location in one of the most popular neighborhoods in Denver and future rental demand.

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

MLS and I negotiated it myself.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

interior paint + built a 2 car garage

What was the outcome?

we got to live in an awesome house in an awesome neighborhood for 2 years then we moved out and rented it. COC return is 13%+ and cap rate is ~6.5%.

Lessons learned? Challenges?

I think i could have negotiated the deal better on the front end; more seller concessions, etc.

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

I negotiated the deal myself and worked with Joe Selander at Edge Home Finance.

https://www.linkedin.com/in/joseph-selander/