Fifth rental property - Melbourne FL 02/2020

[Matt Leber]

Investment Info:

Single-family residence buy & hold investment in Melbourne.

Purchase price: $95,000
Cash invested: $29,000

Found this deal for sale by owner in early 2020. Rent/purchase price ratio is 1.45% with partially guaranteed rents from Brevard County section 8 program. The home is in great shape and a better neighborhood & street than I initially thought. Multiple applications received in the first weekend.

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

Single family properties in Central Florida listed under $100K are usually in bad shape or a bad area. This one was in great shape and I have had no issues with the neighborhood. Rents in this area are well above 1% rule for this home.

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

Zillow, it was a FSBO. Offered $4K below asking and seller accepted.

How did you finance this deal?

25% down conventional 30 year fixed mortgage @ 3.75%