Updated over 6 years ago on . Most recent reply
Buy and Hold Purchase
Investment Info:
Single-family residence buy & hold investment in Memphis.
Purchase price: $18,000
Cash invested: $19,000
This was a purchase from a previous tax sale. We cleaned title on this one, did a complete rehab including new HVAC system and roof, and will be holding long term. Fee free to see the videos of this rehab here!
What made you interested in investing in this type of deal?
I am experienced with tax deed properties and used that to make this happen. The house had been sitting because of the tax deed, but having dealt with them before, I did not have much competition.
How did you find this deal and how did you negotiate it?
Deal was sitting on the MLS for several months. We offered below asking and came to an agreement.
How did you finance this deal?
Deal was financed using the BRRR strategy. We went in cash and refinanced out.
What was the outcome?
Great before and after. We currently have a section 8 tenant placed with guaranteed rent on the 1st!
Lessons learned? Challenges?
The rehab budget on this was $15,000 but we went over around 4 grand on materials. I would definitely budget up some on the next similar rehab. $19,000 wasn't too off the mark for the work that we put in.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Hayes Holmes and Realty - Ellecia Hayes
