The South Is still a great investment

[Jason Rash]

Investment Info:

Single-family residence buy & hold investment in Prattville.

Purchase price: $212,500
Cash invested: $50,000

When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation. This property fits that description.

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

It checks all the boxes that make a great long term investment

3/2 or 4/2
All brick
No pool or basement
No large deck
Newer than 2000
Not in a floodzone
Near shopping and the interstate

Bonus points if you can find something with a garage

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

I used to live here. I actually surveyed land for 12 years in the area and know all which way the socioeconomic patterns are flowing. I know which areas to avoid, which are solid and which are growing.

I paid close to asking, I didn't need to negotiate, it was listed at a great price and I knew this property would be in high demand.

How did you finance this deal?

20% down/ 30 year fixed

How did you add value to the deal?

I like to buy close to turn key as possible. This house only needed a full paint job, hot water heater and new flooring. I spent about 7K on the flooring but it's Mohawk LVP and will last about 100 years. So it was worth it.

What was the outcome?

Amazing, I cash flow about $682/month and it's gone up about 30K since I purchased it.

Lessons learned? Challenges?

That I should have been buying in this area all along.

I haven't faced any challenges yet since owning but will update over the years if any should arise

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

I did but I found the deal myself. Im an agent in Palm Beaches and I know what Im looking for, I just needed an agent to walk the property and let me know it didn't smell like cat pee and cigarette smoke.