A year review of my second property purchase

[Amamihe Nnodum]

Investment Info:

Single-family residence buy & hold investment in Riverdale.

Buy and hold used as short term rental property. Bought undervalued (market value of 265k); refinanced about 1 year later to contribute to next property purchase.

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

I had some success in doing a house hack short term rental with my first property and wanted to continue growing my portfolio. I also wanted to benefit from tax saving before the years end with a new property purchase. Additionally, I wanted to begin using properties to pull equity to go towards buying more.

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

Found this property on the MLS.

How did you finance this deal?

Conventional loan, 20% down non-owner occupied.

How did you add value to the deal?

Repaired deck, new air condenser unit, repainted interior and exterior. Additionally furnished to offer as a short term rental.

What was the outcome?

Operating as short term rental by the bedroom, grossing $3500 - 5000/mo, between $500-1000 net.

Lessons learned? Challenges?

It's OK to be more tenacious with negotiating down, and make the most out of a slowing market to buy at lower prices.

Refinancing has more nuances than it seems, and so do closing costs. Just underwrite a refinance assuming about 30-36% of the money you will receive goes to refinance closing costs at worst, and find discounts when you can.

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

My agent was Liban Ismael with Niyi Adewole. My lender was Ricardo Carillo. I definitely would recommend each of them - very resourceful and of course, investor-friendly.