My first deal -- Lake Worth Single Family Home

[Allyssa McCleery]

Investment Info:

Single-family residence buy & hold investment in Lake Worth.

Purchase price: $112,000

This property I was able to buy below the initial appraisal. We did very moderate rehab; landscaping, painting, installing new window A/C's, replacing baseboards, exterior pest prevention and installing new fixtures such as shower heads. Once the property becomes vacant the floors will be replaced and the kitchen possibly opened up.

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

I had stumbled upon this property in Lake Worth, an area I was not familiar with. At the time, I had been putting out dozens of offers every month for the entire county. This was the first property in which I submitted two offers; conventional and hard money financing. The sellers chose to accept the hard money financing offer and I liked the area the more time I spent there.

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

This was found on the MLS and it was negotiated by sending two offers and allowing the seller to chose which is most appealing to them. The price was further reduced after the inspection came back showing the end of the useful life of the roof and having some minor issues with the plumbing.

How did you finance this deal?

This was financed for 80% of the purchase price using hard money.

What was the outcome?

I was able to pull out more than my initial capital invested due to appreciation of the area and am cash flowing $65/ month (after reserves). I will improve this property further with new floors and an upgraded kitchen once it becomes vacant and be able to rent at a higher rate.

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

Bob Razler at GPG Capital Solution (hard money lender)
Ana Cavallini at United Realty Group (realtor)
Mina Akladious at PRMG (mortgage broker)
Jennifer Mosebach at JEK Realty (appraiser)