2018 Downtown Savannah

[Joseph Nance]

Investment Info:

Single-family residence buy & hold investment in Savannah.

Purchase price: $38,400
Cash invested: $12,500

This property we purchased using an auction site. The single family property was listed as a 2 bedroom 1 bath. It is really a 1/1 bath. The second room does not have a closet. Lucky we were able to rent the unit as a 2/1 to local college students. My only warning is you can not trust what the listing says.

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

What interested my peak in this property was location along with rent potential. The Savannah market is growing and many northerners are retiring and relocating toward the south. The original auction price was under 10K which further peaked my interest. Our plan at first was not to go over 25K, when the auction started we got carried away. I had a number of property managers all check out the property and each said the rent ranged from 900 - 1200.

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

I used Hubzu

How did you finance this deal?

For the particular deal I used a hard money lender (bestegg) for a 3 yr loan at 6.99. They did offer me an option of 5 yr at 8.99. Due to the fact I personally felt this property would generate 1200 a month and because of my other (2) units I would be able to pay the loan back using all the properties income and still have good cash flow. In addition I plan to BRRRR this property once the property has been in good standing for 1 year.

How did you add value to the deal?

We removed all the trash and debris from the property, repainted the interior and exterior. Replaced the wood rot,which was on the exterior of the house. All new appliances and fix a roof leak.

What was the outcome?

We ended up rented this property for 1200 a month with the assistance of a property manager

Lessons learned? Challenges?

Learned not to trust a listing, and that Savannah contractors are hard to find

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

We used, Bestegg.com, Mia Madison properties for property management