Rental #8 with Low Money out of pocket

[Zack Clopper]

Investment Info:

Single-family residence buy & hold investment in Middle River.

Purchase price: $97,000
Cash invested: $17,000

Purchase price was $97,000 with 6% seller help while using a Hard Money lender. We had to pay $6,500 out of pocket now it will be renting for $1,375 per month.

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

We were looking for a property but was not much on the market at the time and we wanted to get something soon. We just decided to leap in even though it was not our typical deal we did not just want to sit around and wait for a better deal for a few more months.

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

Found on the MLS and originally had the offer accepted at $97,000 and 2% seller help and then renegotiated to 6% seller help.

How did you finance this deal?

We used hard money and refinancing into a commercial loan to hold in a LLC

How did you add value to the deal?

We updated the kitchen, bathroom, flooring, paint, appliances.

What was the outcome?

Will rent for $1,375 and the appraised value is $160,000

Lessons learned? Challenges?

Get good contractors to cause less headaches in the process.

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

I am a licensed realtor in Maryland and I negotiated the entire deal.