2nd Rental Property

[Phil Petite]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $90,000

SFH rented with Section 8 tenant!

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

Wanted to add cash flow and another rental to my portfolio

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

Agent from Memphis sent me the listing

How did you finance this deal?

Cash

Lessons learned? Challenges?

It was my first time buying a property with a tenant already in place, it was a good and different experience from my previous deals, which all needed pretty major renovations.

[Walter Jones]

Everything I've ever bought was tenant occupied, and many of them are still with me. Downside is they're still slightly under market rent, with minor increases, but upside is I've spent very little.

When they do decide to vacate I spend some money and get the rent up when I turn it over. 

Memphis is a great area for S-8. Properties may be in less desirable areas but price to rent ratios are good, and if a S-8 tenant isn't a good tenant they lose their ability to participate in the program.