Second Investment Property in Beckley, WV

[Timothy Doenges]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $24,000
Cash invested: $6,000

Closed in mid April. All it needed was a deep clean and a fridge. To be rented for $700 on May 15th for 2 yr contract.

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

Home is close to a new state college that just moved into our area. Expecting the area to gentrify, so I want to ride the wave of appreciation in an otherwise flat market.

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

MLS - offered 80% of list and offer was accepted.

How did you finance this deal?

Investment commercial loan - 85% LTV, 6.74% interest, 15 year mort.

How did you add value to the deal?

Bought at a low enough price that I didn't need to add value.

What was the outcome?

Renting out May 15th, rent will be $710/month for 24 month lease. PITI payments are right around $300.

Lessons learned? Challenges?

In my market, we can get solid deals that are rent-ready on the MLS for $20k-$30k that will cash flow nicely.

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

I'm a real estate agent, so I was able to represent my LLC in my deal. My commission check paid for the new fridge and the clean-out, so I had no additional money into repairs.