Second Investment - Gaining Momentum!

[Laura Bowler]

Investment Info:

Single-family residence buy & hold investment in Inkster.

Purchase price: $38,000
Cash invested: $38,000

Purchased a single family home in Inkster that was partially renovated. In the process of finishing the renovation so that we can get a tenant in it (hopefully within 1-2 months).

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

Previous investment in this area is yielding good cash flow.

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

Found the deal through MLS. Initial price was 50K. Seller lowered to 45K after being on the market a month. We offered 41K based on repairs needed, and then seller negotiated down to 38K in exchange for an as-is, 10 day closing.

How did you finance this deal?

Cash

What was the outcome?

Renovation is in process. A few big ticket items needed (furnace, plumbing completion, and electrical panel replacement) and planning to rent for about $900 a month.

Lessons learned? Challenges?

Don't let the seller pick the title company (we had to travel and it cost $300 more than our last property).