Buy and hold in Waianae, HI

[Anant Naidu]

Investment Info:

Single-family residence buy & hold investment in Waianae.

Purchase price: $195,000
Cash invested: $49,000

Cash flow was my goal and we found this one on MLS (after watching it in my area for weeks). Had existing tenants that wanted to stay long term, it had been on the market for a while so I offered a little less than list and got it after some negotiating.
It is section 8 and I liked how the housing authority paid most of the rent. Total rent was above the market so I wanted to pursue it, we didn't have much competition on this one so we got it $5k under list.

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

Cash flow and Cash on Cash return were my main deciding factors. This one worked out to about $650 cash flow and about 12% CoC so it checked the boxes.

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

I found it on MLS after checking it regularly for weeks. Found and since it was on the market for a couple of months already and since they were waiting for an investor that would not kick out the tenant I offered $10k under and they ended up going $5K under.

How did you finance this deal?

25% down payment from savings, capital from previous investments and partner looking for cash flow.

How did you add value to the deal?

None needed.

What was the outcome?

$600 cash flow initially and after working with the Housing Authority got the rent increased so now we are cash flowing $700!

Lessons learned? Challenges?

Always be looking and have ways to analyze deals quickly and deals will reveal themselves!

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

My bother is an agent and got this deal done for me. The lender was Prime Lending they are a large national lender. Nothing special about them, they got the job done :)