Sevierville Rental Propert #2

[Jeramiah J Peck]

Investment Info:

Single-family residence buy & hold investment in Sevierville.

Purchase price: $150,000
Cash invested: $150,000

We had enough land from our first home we purchased to build another small SFH on to be used as a rental property. Built it out of cash, and looking to cash out refinance later this year.

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

In our market its actually a little cheaper to build (if you already have the land) than it is to buy.

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

Already had the land from our home that we had purchased in 2015, connected with a general contractor and got started.

How did you finance this deal?

Cash

How did you add value to the deal?

Built a brand new 1400 sf home.

What was the outcome?

Property does great paid for it in cash and still get a %13 Cash on Cash return, will be much higher once I refinance.

Lessons learned? Challenges?

Overall it went pretty smooth, only curveball was the contractor didn't hit the deadline on time. Lesson: put the deadline in the contract with a monetary penalty for delayed completion.

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

No