Single family home 4 bed and 3 full bath

[Joshua Watts]

Investment Info:

Single-family residence buy & hold investment in Jasper.

Purchase price: $150,000

Cash invested: $35,000

Bought a house in a good neighborhood with owner financing with 2% interest and a 30 year amortization with a 10 year balloon payment. The house has 2400 sq feet 4 bedrooms and 3 full baths with 5.5 acres of land. I paid seller 20% down and had to make about $35,000.00 in repairs. After cutting down 150 trees, installing a new driveway, a new roof, and smaller things I was able to rent out the house for $1,500.00 per month. Here is a before and after pictures of the project.

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

We specialize in single family homes up to small apartment complexes along with self storage.

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

This house has sit empty for years when I noticed that the owner rented it. Well that did not last long (He said that they did not pay him for months). After he finally removed the renters I saw the owner mowing the two foot tall grass and we made an offer on the spot.

How did you finance this deal?

Owner financing 20% down 2% interest!

How did you add value to the deal?

$35,000 in repairs and cleaning then rented house out.

What was the outcome?

Buy and hold 800 cash flow.

Lessons learned? Challenges?

Cutting down 150 trees is hard work.

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

No I did not work with a real estate agent. Cold call well cold drive by owner in yard