All In One Investment

[Paul Rumsey]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $274,995
Cash invested: $81,011

One-stop real estate investment, using a company that provides soup-to-nuts service (sales, closing, funding, property management).

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

I've heard of these all in house investment options and listened in on a few webinars. It seemed like a potential way to expand into markets outside my personal reach using local expertise. The costs could be justified if the rental performs well (a little less profit short term, for longer term appreciation gains and with little to no effort on my part).

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

The company sends listings daily until I found one that I was interested in. The home was new construction and the builder needed to offload it to recoup funds and pay workers, so I got it at a small discount.

How did you finance this deal?

normal bank mortgage loan

How did you add value to the deal?

It is brand new build, so no room to increase value outside normal appreciation. Using it as rental which covers all costs associated with ownership.

What was the outcome?

It's a longer term hold play, so not much income to speak of this soon. The area has lots of growth and is expected to appreciate substantially over the next ~ 5 years, at which point I plan to sell to capitalize on that appreciation.

Lessons learned? Challenges?

Not all one-stop companies are the same. Be particularly aware of the rental/leasing policies (e.g. how is the company compensated for leasing? if they have a fee associated with a new lease, there is little incentive on their part to find the right tenant).

[Kerry Baird]

That’s a great looking house!  In what part of the country is it located?  I wonder whether there were any builder concessions?  Will you be using the same company to do another house?  

We did something similar when we were stationed overseas with the military, and we bought a new duplex because we didn’t want to have maintenance issues while so far away.  The property was managed and we were new at real estate, so preferred having property management at the time.  The house appreciated and the debt was paid down and that launched us into other investments when we finally did sell.  

Well done~