What a great investment!

[Jason Rash]

Investment Info:

Single-family residence buy & hold investment in Prattville.

Purchase price: $194,500
Cash invested: $51,000

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.

My PM found it, the owner was moving out of the country, got it off market at BELOW market value. I knew this property would be in high demand.

How did you finance this deal?

20% down/ 30 year fixed.

Will refi out my DP + 50K possibly 5 years down the road - and repeat

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?

This has been an amazing deal for me. It cash flows great and I still have the original tenants that moved in. I'm able to raise rent throughout the years.

Lessons learned? Challenges?

That I should have been buying in this area all along

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.