Turnkey Jax SFR Acquired at 70% ARV!

[Nick Macklin]

Investment Info:

buy & hold investment.

Purchase price: $72,000
Cash invested: $2,000

Single family rental in a solidly B to B- area. Low crime rates in surrounding area.

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

Property was in great condition and rent numbers supported decent cashflow

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

Purchased through wholesaler who was asking 85k. ARV assessed at 105k by wholesaler and I independently pulled comps that supported that ARV. Fortunately for me the wholesaler hadn't been successful wholesaling it as quickly as he wanted. I let him know I was interested but the numbers didn't work for me at 85k. I got him down to 72k which worked for me since it was essentially turnkey (could use some minor updating but honestly it's fine the way it is in that neighborhood).

How did you finance this deal?

Financed most of it through private debt from a fellow real estate agent that I work with that just had a bunch of extra money sitting in the bank. Offered 10% interest only payments until refinanced and no points.

How did you add value to the deal?

The only thing I did was add a great renter!

What was the outcome?

I got a renter in there 1 month after close for $900/month and I'll start the conventional cashout refinance in about 1 month and should be cashed out of the short-term debt May 1st 2020. I'll update once that's done!

Lessons learned? Challenges?

Just be honest with people when the numbers don't work. If you show competence and have a decent track record many times a good wholesaler will prefer a quick sale at a lower sales price.