Buy and Hold Investment

[Kelsey Crouch]

Investment Info:

Single-family residence buy & hold investment in Rancho Cordova.

New construction, single-family home

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

we were able to attain great financing in a high rent area.

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

The rent in that area is definitely above the 1% rule, so we started pricing homes, and it was cheaper to do new construction than it was to rehab an existing property.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

No rehab necessary. We wanted to buy now and hold with the expectations of property values climbing in the future.

What was the outcome?

We found a "so-so" property management company, and have a small cash flow. We expect to have a much larger cash flow in the next 5 years, or potentially sell.

Lessons learned? Challenges?

A great property manager is worth the extra money if you are investing out of the state!!!

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

I completed the work myself, and I wouldn't recommend the PM we are currently using.