Greenville, SC, $38,500 less than 10 years ago

[Keren Threlfall]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $38,000
Cash invested: $12,000

Contributors:
Daniel Threlfall

Probably my best deal in the Greenville, SC market, as it was one of our earlier investment properties and in excellent condition at the time of purchase, albeit it needs updated. We have retained the same and quality tenant without raising his rates exorbitantly. (Rent and sale price have both grown exponentially in this area.) New construction and total rehabs nearby are going for $200,000+. I have utilized a cashout refinance strategy to obtain some additional funds for other projects. When current tenant is ready to move on, or after several years we may do a complete rehab. Depending on the local market, we will retain or continue to hold.

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

I knew the market was going to increase in this area, but at the time, even spending that much was a lot for me!

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

It was an estate sale, and I wrote a letter to the seller and also pointed out some of the property's weaknesses relative to other properties in the area.

How did you finance this deal?

Crazily, I did finance this one. Mostly with cash from the sale of another home, but also with financing with Lima One at the time.

How did you add value to the deal?

I held onto it, and also updated paint colors. Found a quality tenant, used excellent management, and have made repairs quickly.

What was the outcome?

This has worked well as a buy-and-hold. Personally, I'd love to keep the house and fix it up down the road.

It also helped the snowball effect in realizing the power of combining monthly profit from multiple properties.

Lessons learned? Challenges?

You'll never regret starting and trying. Looking back, taking this step (not our first rental, but our first 1-5) was huge, and our income wasn't that high. I was a stay-at-home mom of 4 (3 kids, at that time), but I was hooked on real estate after this deal.

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

Not on this deal, but I highly recommend Tom Glass of Prime Lending for any conventional mortgages.