Property #4 (Buy and Hold)

[Andrea Castor]

Investment Info:

Single-family residence buy & hold investment in Dayton.

Purchase price: $52,500
Cash invested: $25,000

3 bed, 1 bath 1080 sq ft brick ranch

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

Cash flow potential

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

Listing was listed in another town accidentally. My husband went to see it anyway knowing where it was. All original but we put in a low offer. The owner was going to a nursing home so took it.

How did you finance this deal?

Cash

How did you add value to the deal?

Inside needed new bathroom, new furnace, water heater, kitchen, flooring, paint. Outside eventually needed room, windows and driveway.

What was the outcome?

Just refinanced at $115,500, 30 yrs fixed @ 4.125%!

Lessons learned? Challenges?

This was our first rental in a more up and coming B- neighborhood. After many less desirable applications, we lowered our standards and spent a year starting the eviction process each month till the tenant paid. Learned how to not renew a lease and not return a deposit.

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

Yes, Amy Faler!