Larger Single Family Home in growing master planned community

[Donald Hatter]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $690,000
Cash invested: $172,500

Took a gamble on a larger single family home in an up and coming master planned community. Negotiated a good deal. Paid 77% of the original list price on this new construction home. Was fortunate enough to lease for higher than expected rental rates. Plan is to hold as long as my IRR is higher than 10%

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

I prefer new construction homes where an opportunity for a good deal presents itself

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

As a realtor I am sometimes aware of deals before they are put on (or back on) the market

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

Was able to gain some leverage prior to negotiating which resulting in a great outcome

What was the outcome?

Currently being leased, but expect my total cash on cash return to be above the number I target. Only time will tell

Lessons learned? Challenges?

Double check financing before making an offer.

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

I am a realtor and I didn't work with any other realtors on this deal. And yes I would recommend my services :)