The Ormond Group, LLC. Buy and Hold and Rent for Cash flow

[Josh Mead]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $138,000
Cash invested: $30,000

Single family, 2 bedroom, 1 bath, 950 sq. ft. w/ 1 car garage. Have rented continuously since 2004.

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

This was a solid, concrete block home, near my primary residence (at the time) on the beachside which is close to the beach and river.

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

We found the deal through a realtor friend we were working with at the time.

How did you finance this deal?

Cash down payment was provided by myself and my brother who started a LLC to hold the properties for long-term hold and rental purposes.

How did you add value to the deal?

We provided the capital to make the down payment for the purchase and also completed the repairs ourselves because we are both handy men.

What was the outcome?

The house has been continuously rented and creating a solid cash flow. It has since been paid off and provides a $1,200.00 monthly rent.

Lessons learned? Challenges?

We learned to better capitalize on the rents in our area and not be shy to charge the prevailing (and strong) rent rates for our area.

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

Realty Pros Assured Real Estate Agent, Todd Hammond.
Allstate Insurance Broker, David Beck