2nd Property to add to my porfolio

[Ryan Young]

Investment Info:

Single-family residence buy & hold investment in Hattiesburg.

Purchase price: $67,000
Cash invested: $16,600

2nd property to add to my portfolio. This was on the MLS for only a few days before I put it under contract. List price was $72,500 and worked out a purchase price of $67,000 including $1,200 in closing costs covered by seller, foundation was repaired prior to closing ($3,500), and seller paid all of the realtor fees as well since it was FSBO. Tenants moved in the day of my closing for $900/month and my total monthly payment is $478, so this property is cash flowing nicely. My future plans are to put roughly $10k-$15k in cosmetic updates then eventually refinance to get my money back out and hopefully plus some. Very solid deal.

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

This property was a FSBO on the MLS. I offered him $10k under list price to see if he was motivated and worked up to the purchase price from there.

How did you finance this deal?

Conventional Loan with 20% down

How did you add value to the deal?

First was to negotiate the price down and to buy at the right price. I purchased for $67,000 and it appraised for $81,000. After the lease agreement expires with the tenants I have in place, I will spend roughly $10k-15k to update it and will appraise for roughly $115,000.

What was the outcome?

So far, so good. Tenants moved in the day of closing and has been great so far. Very happy with this deal.