First Buy and Hold Long Term Rental

[Greg Lees]

Investment Info:

Single-family residence buy & hold investment in Ridgeland.

Purchase price: $191,400
Cash invested: $38,500

New construction, 3 bedroom, 2 bath, 2 car attached garage. Central heat and air conditioner.

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

It's new construction. It's under warranty, and in a good location. The numbers worked great on cash on cash ROI

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

My Real Estate Agent in Beaufort, SC, Jared Romero, helped me find this deal.

How did you finance this deal?

I paid cash using my HELOC on my primary residence

How did you add value to the deal?

I added ceiling fans, a brand new refrigerator/freezer, and washer and dryer. I hired a local licensed real estate broker/property manager, and he quickly put a great tenant in my rental.

What was the outcome?

So far, so good

Lessons learned? Challenges?

Next time I buy a long term rental, I want to buy a property that I can negotiate for 70% of ARV. With brand new homes, it's tougher to do. I spent more than I wanted to on my first deal, but it will pay off.

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

Yes. Jared Romero with Bay Street Realty Group in Beaufort, SC. I'm also working with Bryant Brokers in Bluffton, SC as my property manager. I also used Move-N-Ready, LLC for my home inspection, and Patriot Appraisals, LLC for the home appraisal before I went to closing.