Little Gem In The Rough

[Mark Patino]

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $62,500
Cash invested: $17,000

Found this little gem while looking for a new primary residence. The reason this property made sense was because there were already tenants in place and the rent to mortgage ratio made sense. Although my focus is mainly on multi-family, the numbers penciled out and I wanted to take advantage of the low purchase price and the small cosmetic repairs.

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

The purchase price and the small cosmetic repairs that it needed.

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

I found this property on Realtor.com and actually went to go see it the next day.

How did you finance this deal?

Conventional financing was used and the down payment was small.

How did you add value to the deal?

The rents are about $75 below market rents, so we're fixing up the small cosmetic repairs and then we will be upping the rents to the market standard.

Lessons learned? Challenges?

After looking at nine other properties and not being able to negotiate them to a price point that made sense, my wife and I were close to stop looking for awhile. Consistency is key, I'm glad we continued to search and look at properties even after we got tired of going out week after week.