Our First Deal!!!! SFR Buy & Hold

[Shardae Robinson]

Investment Info:

Single-family residence buy & hold investment in Clarksville.

Purchase price: $20,900
Cash invested: $20,900

This was an off-market, pre-foreclosure deal; quit claim deed. This lead was sent to me through my father, a contractor, who knew we were open to good buy and hold opportunities. Cash invested is 20,900. House will rent for $1375 to $1400 with us taking over mortgage payments of $815/month. Not bad ROI for our first deal. Closing today!

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

Very interested in Buy & Hold properties.

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

Actually was focused on Multi-Family, but my father (a contractor), had a lead on this off market, pre-foreclosure and I reached out to the agent/wholesaler. Negotiation was limited; there was a basic cost of entry (past due mortgage payments, fees, and finders fee for agent). My husband and I could not pass up this opportunity.

How did you finance this deal?

Cash from HELOC on personal home.

How did you add value to the deal?

This is really a turnkey property and will only require a little cosmetic work to the tune of $1K to get it into excellent condition to justify and bring in the rent we are expecting/asking

What was the outcome?

Closing Today 8/7! Quit Claim Deed Purchase
SFR - 3bd/2bath; 2 car garage; fenced in backyard; deck
Cash Paid = $20,900
Monthly Mortgage P&I = $815
Rent =$1400

Lessons learned? Challenges?

This wholesale deal is really new and it is a risk, but we were diligent in researching and feel justified in taking the leap to do this deal. The biggest challenge with this deal was due diligence in uncovering an potential unknowns (liens on property, etc.) AND just being brave enough to go for it. We did find one unpaid utility improvement in the amount of $2K that had to be cleared up, so just little things like that have to be addressed.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, worked with an agent that had the wholesale deal that was recommended to me by my father. My mom (realtor) and dad (contractor) went and did the walk-thru of property while I worked my 9 to 5! (shout out to the supportive parentals :) I will share agent details later.