Cash-Flowing Rental to Section 8 Long-Term Tenant in a Class B neighborhood

[Wale Lawal]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $250,000
Cash invested: $52,000

2013 Built in a Class B neighborhood of Houston. Renting to Section 8 Long-Term Tenant
Purchase Price = $250,000
Renovation Cost =$3,800
Appraised Value = $270,000
Monthly Rental To Section 8 Tenant = $2,800
Monthly Mortgage Payment = $2,100
Monthly Reserve for Maintenance and CapEx = $200
Monthly Cash-flow = $500
Another investment property was closed and added to my rental portfolio. Congratulations to myself on this one.
Unto the next one!

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

2013 Built in a Class B neighborhood of Houston at 6% discount with less than $4,000 renovation needed.

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

MLS. I am a Real Estate Broker myself who has helped over 400 other investors.

How did you finance this deal?

DSCR Loan with 20% Downpayment

How did you add value to the deal?

Converted an empty room to a standard room to make it a 6-bedroom instead of the original bedrooms which increased the rent from $2,200 to $2,800 for Section 8 voucher holders for this zipcode.

What was the outcome?

Rented at $2,800 to a Section 8 Long-Term Tenant

Lessons learned? Challenges?

Always buy when others are fearful and have your finances in order.

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

Yes, I represented myself. I am a Real Estate Broker myself who has helped over 400 other investors.