First residential rental property

[Jim Kittridge]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $43,000
Cash invested: $10,000

Off-market property with updated electrical, plumbing, hvac, floors, doors, etc.. Roof and windows were replaced 8 years ago. Includes garage/storage building.

With very conservative underwriting, it produces a CoC return of 16.78%

High level monthly expenses:
Vacancy $45.00 (5%)
Repairs $45.00 (5%)
CapEx $45.00 (5%)
Insurance $60.00 (7%)
Management $108.00 (12%)
P&I $331.89 (37%)
Property Taxes $59.17 (7%)
Total $694.06 (77%)

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

Updated mechanical and most cap ex items were 8 years old. Plus, it only needed the last 15% of renovations to finish it

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

Marketing directly to property owners

How did you finance this deal?

Commercial lender

How did you add value to the deal?

Increase rent with professional management