Property #1 - SFH for Buy & Hold

[Michael Giuffre]

Investment Info:

Single-family residence buy & hold investment in Marietta.

Purchase price: $90,000
Cash invested: $18,800

Currently on market for $185,000 after investing $25,000 in cosmetic renovations and holding for over 2 years as a rental. Decided to sell all of our SFH to focus on multifamily properties.

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

It was a short sale at a very attractive price and allowed us to get into real estate investing (outside our AirBnB unit and house hack) for under $20,000 cash out of pocket in 2017.

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

MLS - made a full price offer after seeing it once. Buyer accepted and their lender approved.

How did you finance this deal?

20% down conventional fixed mortgage via Angel Oak Home Loans.

How did you add value to the deal?

Made minor improvements as tenants turned over but costly fixes ate up all expected cash flow. As such, after significant market appreciation we decided to renovate in May 2019 and list on the MLS at $185,000.

What was the outcome?

Pending potential sale on the MLS.

Lessons learned? Challenges?

1.) Ensure that your cash flow expectations take into account aging systems, and
2.) If investing for cash flow, multifamily properties tend to produce much greater cash flow and cushion.