Buy and Hold - Rental Property

[Monica Molina]

Investment Info:

Single-family residence buy & hold investment in Hutto.

Purchase price: $185,000
Cash invested: $10,000
Sale price: $182,000

Second rental property purchased before attaining real estate investment knowledge. With this property cash flow was minimum. Decided to sell sooner than loosing money slowly.

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

Location close by to manage on my own and price point under $200K

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

through real estate agent. Price was negotiated with getting a new roof. I was the 3 offer that was about to walk

How did you finance this deal?

FHA

How did you add value to the deal?

I installed wood looking title in the common areas, renovated both bathrooms, changed HVAC and replaced fence.

What was the outcome?

Great rental property. Unfortunately I bought it too expensive leaving no room for positive cash flow.

Lessons learned? Challenges?

Always do my analysis with the 30% in mind. look for comparables
Challenge was to try to sell the property when we are in a market were new constructions are all over the surrounding neighborhoods offering great incentives. I could not compete against a new house.
I sold my property to another investor. I transferred the current tenants and their original lease term.

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

Yes, Alex Booth. She is a family friend and extremely smart when it comes to the Austin market, trends, neighborhood, and care about her client needs.