Beautiful Bolingbrook Home with Pond Views

[Sami Patel]

Investment Info:

Single-family residence buy & hold investment in Bolingbrook.

Purchase price: $240,500
Cash invested: $12,025

Set up as a 5% down 15 year mortgage. At the time of purchase, I was 24 years old so this should be paid off by the time I'm 40. This is my first investment and my ideology going in was to spend as little money on interest in the long term. I have recently discovered BiggerPockets and have been studying in-depth on other ways to secure funding besides a traditional mortgage from a broker. I would definitely consider that as a future option.

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

This was a deal that my parents helped guide me through as I was looking to move out of stock/options to real estate. I needed a ton of help on everything leading up to closing (understanding procedures, deliverables, etc).

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

The owner had lived there for over a decade and was widowed/retired/looking to move with her kids. Motivated seller helped us get a great price and a few concessions.

How did you finance this deal?

80%of the down payment is an interest free loan from family member. The upgrades (granite countertops, new sink, new paint, light fixtures, faucets) and the remaining down payment funded through my savings.

How did you add value to the deal?

I am managing the property as it stands currently. I owned and will continue to own tenant search and screening, home upgrades, maintenance, lease writing, local permitting, and other administrative functions.

The property has been repainted, some light fixtures are updated, keyless locks installed, blinds replaced, and granite countertops installed.

What was the outcome?

I have a tenant starting July 1, 2020. Property will break even for the early term of the lease, then yield some money as rent increases (if rent increases). However, it will yield $30K+ when its paid off.

I personally wish there was more cashflow. Honestly, I didn't fully understand the numbers like I should have going into this deal. However, I have no regrets and new learnings to engage in future deals and know what makes an investment good.

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

No agents involved. The home didn't sell with an agent several months prior. Just noticed that the owner was the same as a while ago once when I was driving by months and months later. Struck up a conversation and she was still looking to sell.