Enough Cash Flow Can Make all the Difference

[Stevan Garcia]

Investment Info:

Single-family residence buy & hold investment in Spring Hill.

Purchase price: $110,000
Cash invested: $30,000

Nice cash flow property with modest appreciation.

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

Tampa Bay was bottoming out in 2013 and I knew I would be in a good position to take advantage of improving market conditions. This property has generated strong cash flow returns and would be a great buy and hold investment anchored with an excellent loan on the property. Appreciation is luck-warm.

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

This is the only property I have purchased sight unseen. I researched NARPM website to find well recommended property managers and asked for references from property managers to find good real estate brokers. Always asking for references to build a strong local real estate power team!

How did you finance this deal?

Conventional 30 year fixed mortgage with 20% down.

How did you add value to the deal?

Updated whole house with laminated wood flooring, kitchen backsplash, new paint with accent walls and stainless steel appliance package.

What was the outcome?

Making over almost $500 cash flow per month.

Lessons learned? Challenges?

This time I didn't see the property before I bought it. I ended up with the best house in an OK neighborhood. I should have tried to get an OK product in a great neighborhood to add value. This is a good lesson learnt as the downside is modest appreciation but great cash flow. It is an oversight that I can live with.