First buy and hold rental

[Alex Bock]

Investment Info:

Single-family residence buy & hold investment in Moline.

Purchase price: $17,000
Cash invested: $2,000

First buy and hold with a monster cap rate. Everyone else was too scared to purchase it because it's on a hill and it's a large house so I am going for it. I am VERY excited!

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

The price is right and the income potential is attractive.

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

A wholesaler I have been mentoring brought it to me. He did all the negotiation.

How did you finance this deal?

A hard money lender, not ideal but the banks all tell me to get lost because I am self employed. The margins are so great that I will still stand to make a killing even with the 9% interest and 9 origination points.

How did you add value to the deal?

I am going to give it a nice cosmetic facelift and add a bathroom to make it rent ready. Most of the hard work (Boiler, water heater, roof, etc.) has all already been done. Will probably also re-pave the driveway as the parking kinda sucks.

What was the outcome?

TBD! Hopefully a $500+ cash flowing section 8 property.

Lessons learned? Challenges?

Also TBD, I'm sure there will be something!

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

Homes in the QC, they are giving me a chance when no one else will and they seem to be good honest folks.