Buy and hold SFH number two

[Nick Maugeri]

Investment Info:

Single-family residence buy & hold investment in Benton.

Purchase price: $65,000
Cash invested: $14,000

Single family buy and hold residence. Purchased with no tenant, that had previously rented at market value.

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

The property had been on the market for a substantial amount of time - vacant with little deferred maintenance.

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

Realtor.com and local real estate agent. Asking price was $79K, negotiated vacancy and deferred maintenance down to $65k.

How did you finance this deal?

Conventional with 85% LTV.

How did you add value to the deal?

By buying the property below market value, it will appraise at an amount high enough to pull our initial investment out in full.

What was the outcome?

Holding and renting.

Lessons learned? Challenges?

Negotiation skills are paramount in the success of real estate investing. Solving issues for the seller carries a lot more weight than it would seem at face value.

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

Absolutely.