Dakota Ave FIX & RENT

[Edward Toomey V]

Investment Info:

Single-family residence buy & hold investment in Roanoke.

Purchase price: $55,000
Cash invested: $15,000

Single family home fully renovated and now renting for $1,000 per month $300 more than the average rent in NW Roanoke.

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

Low purchase price and creative financing made this house a good asset for networth on our balance sheet and provided higher than usual cash flow from rent.

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

The house was listed for sale on the MLS and had been a rental for decades. The house is in a part of Roanoke that doesn't sell well and is mostly renters so we approached the owner about owner financing $55,000 sell price $10k down 4% APR over 30 years with 10 year balloon. This owner finance deal made it easy for us to buy the house and get it repaired and cash flowing before going to a traditional bank for financing.

How did you finance this deal?

Owner financing

How did you add value to the deal?

We fully remodeling the house new kitchen, bathroom, added in unit laundry, refinished hardwoods and fresh coat of paint. The house was valued at $110,000 after $20,000 worth of repairs.

What was the outcome?

We added a property to our balance sheet with lots of untapped equity and cash flowing positive income to the tune of $600 per month

Lessons learned? Challenges?

The house sits on a very narrow street and has a steep narrow driveway these logistic issues made getting a dumpster placed impossible nor could we place our own trailers in the driveway or on the street. All the clean out and construction waste had to be loaded in a standard pickup and taken to the dump. This added $1,500 in extra labor because of the added trips.

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

Sharon Crenshaw with Wainwright Realtors in Roanoke VA