Our second investment property

[Helen Lowery]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $20,000

This is a 3 bedroom 1 bath home in an established neighborhood.

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

This is a home that my husband and I rented when we first moved to Williamsburg in 2009. We bought our first home in 2015 and moved out, but stayed in touch with the landlord (who lived out of state). I knew he wanted to sell, and in 2017, I offered him $80,000 for the property and we settled on $85,000.

How did you finance this deal?

I didn't have the cash for the down payment, so I had a lawyer draft a 12 month lease-option to buy us some time to come up with the money. We sub-leased the property during the 12 month period and cash flowed $300 a month from that. At the end of the 12 month period, we bought the property, kept our tenants, and now have a rental that cashflows $400 a month.

How did you add value to the deal?

At the end of the current lease, we plan to renovate (drywall, floors, and other repairs), and then re-finance to pull our initial capitol back out.