Package of Two, Single Family Rentals

[Pamela Morrison]

Investment Info:

Single-family residence buy & hold investment in Flint.

Purchase price: $77,500

Cash invested: $500

Package deal on two single family rentals purchased from another investor liquidating assets due to a divorce.

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

We were looking to scale our business quickly. We still work so finding rentals with tenants is a bonus.

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

I was looking for a new agent to work with. I had seen a name of an agent on several rental type properties and thought maybe he would be investor friendly. I called on a condo he had listed. He told me of his client that was liquidating. We looked at two and wrote an offer on a package deal. The agent did a very good job of working both sides. Both properties were listed together for $92,000. We paid $77,500.

How did you finance this deal?

Hard money lender. We will refinance with a bank soon.

How did you add value to the deal?

Turnkey properties with established renters. We negotiated well and feel we got a fair deal on the homes.

What was the outcome?

Even with the hard money loan we cash flow about $500 total. That number will increase significantly when we refi out of the HML.

Lessons learned? Challenges?

It’s hard to find an investor friendly agent. We also kept these properties with the current property management company.