Here's why the South is an amazing investment play

[Jason Rash]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $215,000
Cash invested: $55,000

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. When you know what to look for, you walk away with a great deal.

How did you finance this deal?

20% down/ 30 year fixed.

Will refi out my DP + 30K possibly 5 years down the road - and repeat

How did you add value to the deal?

Being 1,500 miles away when I bought this, I like to buy close to turn key as possible. This house only needed a full paint job,garage door repair and new flooring. I spent about 7K on the flooring but it's Mohawk LVP and will last about 100 years.

I woke up one day and realized I needed to run all my deals in the same way a hotel manages all their properties.

What was the outcome?

This has been an outstanding deal. I still have the same tenants that originally moved in when I bought the property and fixed it up. It cash flows mightily and since there are very few properties in the area that ever come up for sale, which keeps the price going up. And very few properties that come up for rent, which keeps rent going up as well

Lessons learned? Challenges?

That I should have been buying in this area all along. And to scale up you need to buy properties that people will live in for 3-5 years, taking care of the property and making sure to continue to raise rent along the way.

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.