Updated about 7 years ago on . Most recent reply
Never Be Embarrassed!
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $18,500
Cash invested: $800
NEVER BE EMBARRASSED!
We used a bank to finance this property. Why you may ask? Could we have paid cash in full for this? Maybe...Maybe not. The point is to not extend your capital so there is some in reserve for the next deal.
Why pay $18.5k when you can finance and pay $4420 and have almost $15k in reserves ready to pounce on the next deal.
We are not ashamed or embarrassed when we tell our friends, family, and fellow investors. Some may scoff but in the end, the numbers work and the cash flow is nice :)
Bought for $18,500
Closing Costs including downpayment $4420
Appraised for $21,000
Rent $800
Cash Flow $480
What made you interested in investing in this type of deal?
Cash Flow Cash Flow Cash Flow
How did you find this deal and how did you negotiate it?
We found this off Craigslist, and got the owner to knock off a whopping $500.
How did you finance this deal?
A bank. At first they were hesitant and said it is not an amount they normally finance. This is where having a good relationship comes in handy. We told them there are many more we will be bringing to the table (and we are), and we will work hand in hand with them.
How did you add value to the deal?
We repaired the "minor" things and put it up for rent.
Most Popular Reply
I'm having a hard time wrapping my head around the fact that it rents for $800.