SFH Buy and Hold - Lexington KY

[Emily Beatty]

Investment Info:

Single-family residence buy & hold investment in Lexington.

Purchase price: $212,000
Cash invested: $53,000

Single Family Home across the street from Central Baptist Hospital and University of Kentucky. Made a few updates and got this property rented for 6 months. Intent to raise rent around $400.00 to $500.00 a month with student occupants for the 2020 school year.

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

Near a hospital and University of Kentucky for steady stream of renters at a premium rate

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

Sitting on the MLS for a while... seller was over priced. Made him a fair offer and he counters not too far above my initial offer. We settled on a deal!

How did you finance this deal?

Commercial Loan through an LLC. 25% down payment on a 5/1 arm at 25 year amortization

How did you add value to the deal?

spent around 10K doing some cosmetic updates and new water heater. got it rented two days after a quick renovation.

What was the outcome?

We are temp rented on a 6 month lease - not making a lot of cash flow for the initial 6 months. Currently pre-leasing for the college school year to be getting $400 to $500 in additional cash flow after initial 6 month term.

Lessons learned? Challenges?

buying property to rent to students must be done at the perfect time in the year to get renters in on the correct schedule. Have contractors at the ready to get work done swiftly upon closing and reduce lag time to get renters into a unit.