Safe Investment As Out-of-State Buyers

[Oren Pfeffermann]

Investment Info:

Single-family residence buy & hold investment in Oklahoma City.

Purchase price: $119,500
Cash invested: $30,000

3Br 2Ba house in Edmond, Oklahoma (just north east of Oklahoma City).

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

We were looking for a safe investment. Nothing fancy, nothing too risky. The idea is to remain cash neutral until we retire in about 20 years. We didn't want to spend more than $40k down, and found this one. We live in California, and prefer to buy cash flow type properties. Would not have invested out of state unless we have people that we know in the places we buy. Good thing one of my best friends lives out there!

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

Asking price was $125K. We negotiated down because HVAC was completely shot.

How did you finance this deal?

Used AIM loan. 20 year fixed at 4.625%

What was the outcome?

Replaced HVAC and with the help of a great property manager, rented the house for $1195 in less than a week. We intend to buy-and-hold.

Lessons learned? Challenges?

Don't be afraid to ask for less than what you agreed if you find glowing problems with the house. Be sure to have a contingency period so you can do your due diligence. Be sure that you have a good general inspector, and ask for estimated repair prices.