Real Estate Investment Property Deal in PG County

[Antwoine McCoy]

Investment Info:

Townhouse buy & hold investment in Bowie.

Purchase price: $310,000
Cash invested: $17,205

Purchased existing townhome from family members as a rental property and was able to utilize a gift of equity to reduce the downpayment requirement.

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

Met my requirement of $500+ Cash flow /unit . Property is also near a new hospital that is opening within the next 18 months.

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

Purchased from immediate family member, family member informed me of interest to sale

How did you finance this deal?

86% Conventional Financing
5% Cash
9% Seller Credit

How did you add value to the deal?

Identified and negotiated the option of using a Gift of Equity to reduce out of pocket costs but kept sales price/future comp value intact.

What was the outcome?

Due to circumstances beyond my control I was unable to occupy the property. Enrolled in the local Housing Choice Voucher Program and rented the property. Anticipated 20.7% Annual Profit Margin | Projected Cash on Cash Return of 25.4%

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

Yes, Katie Simmons Hickey of Caliber Home Loans in the Washington, DC Metro area