Single family home purchased 2002

[Tim Hendricks]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $102,000
Cash invested: $20,400

Typical of what we buy. 3 bedroom 1and half bath partially finished basement, 2 car garage in basement.

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

Steady long term cash flow. Tenant does maintenance and repairs just like they would with a bank mortgage.

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

MLS

How did you finance this deal?

Bank financing with 20% down.

How did you add value to the deal?

Offered a house for sale on long term lease with option to purchase. Tenant could not qualify for a bank loan.

What was the outcome?

Cash flow for 18 years with 2 turnovers. 2 months total vacancy.

Lessons learned? Challenges?

With current price appreciation in middle TN I have learned that I should have done a hundred more in 2002.