206 Maple Rental

[Solomon Brown]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $213,000
Cash invested: $13,000

This is a Townhouse located right outside of Forman university. The townhouse is 3 stories with a office on the bottom floor, kitchen and livening room on the second with all rooms on the top floor.The Townhouse is being rented by a friend and we are being helpful this year. This is why the cashflow is lower than normal this year.

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

It was our first house and me and my wife bought and new it was a great investment that would work with college rentals and younger families.

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

There was not much of a negotiation as we got in on a Ryan homes community very early.

How did you finance this deal?

Traditional Mortgage

How did you add value to the deal?

Holding on to it with painting of the interior and upgrades to countertops to be granite.

What was the outcome?

The houses value has increase by $50,000 since purchasing.

Lessons learned? Challenges?

A lesson learned in this process so far is that adjusting rent is important specially considering the increases in taxes when going from 4% to 6%.