Primary home tuned rental property

[Danny Godde]

Investment Info:

Single-family residence buy & hold investment in Smyrna.

Purchase price: $425,000
Sale price: $475,000

I purchased a new 6/5 bedroom home in the northwest suburbs of Atlanta in 2013. After living in it a few years I noticed the rental market locally would generate positive cash flow for me. We vetted tenants at a very strict and high level that allowed us to get the best tenant possible. I was offered full year paid in cash by several potential tenants but chose to go with the high credit solid income history. this offered us a smooth and low-stress landlord experience. in 2017 I sold the home.

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

location, schools, the reputation of the builder.

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

The original home price/listing price of the home was 480K we got it appraised and negotiated that we would not pay a penny more than the appraised value. The builder agreed based on our terms to sell the home for the current market price so we saved the difference between the 480K and the purchase price of $425K. The home had a fully finished basement full of upgrades that we in a sense got for free/next to nothing that allowed for us to sell for a profit several years later.

How did you finance this deal?

conventional 20% down.

How did you add value to the deal?

comps and appraisal.

What was the outcome?

Sold the home and reinvested this into a new home in south Florida.

Lessons learned? Challenges?

To vet the realtor as much if not more than the tenants. Know that they're after they're own best interest.

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

Yes and no I would not recommend the real estate agents who we worked with.