7 Single Family Residence Portfolio

[Peter Needham]

Investment Info:

Other buy & hold investment in Akron.

Purchase price: $233,000
Cash invested: $233,000
Sale price: $330,000

Bought a SFR portfolio and held the properties for 3 years holding on an average of an 18.5% ROI.

We sold and make a small profit of $97,000 in the sale.

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

Great cashflow and gave me a lot of flexibility to be able to use and leverage this portfolio to expand my overall portfolio.

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

It was a pocket listing from one of my real estate agents that I work with regularly.

How did you finance this deal?

I used a capital investor that financed the whole thing for an equity split.

How did you add value to the deal?

Since the properties were already in great shape we didn't have to do much. We focused on being high quality landlords and providing amazing service to our tenants. Every year when we would up their rents they had no problem with it because they knew we would take care of them and fix and issues immediately. By doing that we raised rents a total of $300 per property over the whole time I owned the properties.

What was the outcome?

We sold for a $97,000 profit while maintaining a 18.5% ROI on average for 3 years.

Lessons learned? Challenges?

Take care of your tenants and really care about their welfare and they will take care of your property and you.