First Local Rental Purcahsed

[Phillip Herring]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $115,000
Cash invested: $115,000

2 Master Bedrooms, 2 Master BATH Townhouse

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

Looking to buy my first rental property near where I lived. Looking for investment and cash flow.

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

I was waiting to meet my realtor to look at a property next door to this one. The owner saw us waiting in the street and looking at the house next door and asked if we were looking to buy. She told us she was about to put hers on the market and invited us to take a look. We met our realtor shortly after taking a look. I told him about our conversation, and he blessed us by telling us we would be foolish to overlook this off-market deal. He lost a deal, but we purchased 3 more from him.

How did you finance this deal?

Cash deal with sale of another rental property out of state that was paid for in full after renting for almost 20 years in TN.

How did you add value to the deal?

Cosmetic updates, Pulled up carpets and updated with LVT, New Counter tops, painted cabinets, new appliances, new deck, fence, paint, lighting, etc. (all sweat equity)

What was the outcome?

Property has more than doubled in value, Rents have increased by 40% and very little turnover.

Lessons learned? Challenges?

Property manager is KEY! A good one is worth every penny of the 10% he/she earns.

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

Absolutely!