COVID-19 Home Run deal

[Maxwell Fontaine]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $39,500
Cash invested: $50,000

This home is a rent by the room deal. I was inspired by Felipe from the Rookie podcast. It is a very high time commitment when compared to traditional rentals. But I will do this again to get a real feel on it.

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

The rent by the room model and high ROI peeked my interest, my business model is to impact as many lives in a positive way as I can and i feel this is another great way to do that.

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

I found this deal from the MLS, but my realtor told me the day before it was listed to get ready to purchase a good deal. And man was she right.

How did you finance this deal?

Private lending deal at 100%

How did you add value to the deal?

I fixed the flooring in the home and painted and added electronic security to each room. It immediately rented out

What was the outcome?

100% financed deal that cash flows more than double the traditional rental amount. Learned way more on this deal any other deal using a realtor.

Lessons learned? Challenges?

I learned that the purchase price and actual out of pocket price can be very different. An amazing tool to argue and leave the purchase price stay at what the original contract price.

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

I worked with an agent and a private lender.