Amazing investment - 1980 Regent Rd

[Jason Rash]

Investment Info:

Single-family residence buy & hold investment in Three Oaks.

Purchase price: $194,500
Cash invested: $42,000

Fits the perfect long term cash flow model.
- 3/2
- all Brick
- No Flood Zone
- No pools
- No Deck
- Built in 2006

Original tenants have remained in the property with yearly increases to rent.

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

This was the perfect investment property in a perfect neighborhood. This neighborhood does have an HOA only $24/ month but the tenants get a community pool. Also this house was in a 500 year floodplain and a very small deck off the back. There's no trees on the lot at it's manageable for someone to stay for 3-5 years. Additionally this property is located right of the interstate making at very desirable for anyone commuting. This property has a garage which adds $150/ month to rent.

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

I found this deal through my PM. She reached out to me that the previous owner lived out of state and was looking to move out of the country. However she wasn't going to fix anything. I knew this was a great deal from the jump. But here's what made it sweeter. During the inspection the water heater went bad, and my PM knew I wanted the property so she neglected a new water heater in the deal!

How did you finance this deal?

20% down, conventional financing 30 year.

How did you add value to the deal?

We came in painted and replaced all the flooring with Mohawk LVP flooring. This vastly increased what we could charge for rent.

What was the outcome?

Fantastic. $600+ / month in cash flow. I still have the tenants who moved in right after I bought it and fixed it up. I increase rent every year and I don't have any issues years into it.

Lessons learned? Challenges?

This house was the 12th house in our 17 property acquisition run. At this point in the run up I pinpointed all the potential pitfalls for real estate investing in the first 11 properties. The main lesson I learned was that if you have some experience you can pick the right property, in the right location, fill it with the right tenant and it can actually work out! The tenants have been in the property for a few years now and they just renewed for another year.

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

My PM facilitated the deal. I was not an agent at the time or in that state.