Long Term Buy/Hold in A area Winter Park, FL

[Hilary Stalder]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $300,000
Cash invested: $65,000

3/2, 1850 SF single-family in Winter Park, FL 32789. We started construction 6/19 and we're attempting to get the house ready for rent in August to beat the school year starting.

Purchase Price: $300k

Down Payment: $10k
Principal: $290k
Mortgage Payment: $500

Taxes/Insurance: $500
Lawn: $100
Vacancy/Repairs/CapEx: $360
Total Monthly Expenses: $1435

Total Expected Rehab Costs: $65k-70k

Total Expected Monthly Rent: $2400-2500
Total Monthly Cash Flow: $965-$1050

CoC ROI: 14-15%

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

I loved this property. I know we're not supposed to get emotional but it was difficult with this guy. When I found out my father-in-law bought it with owner financing and was paying interest only payments I knew the numbers may be different than my initial analysis. Sure enough, once the numbers worked we were all in! The area alone is worth the value in the land.

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

My father in law knew the original owner. He passed away and his daughter (who lived in DC) was trying to sell it. Because of the connection she was excited to sell it to someone she knew/trusted.

How did you finance this deal?

Owner financing. Interest only payments for 7 years, balloons at 7.

How did you add value to the deal?

We're doing a complete gut of the house. New roof, new AC, moving electric panel (fortunately electrical had already been updated and house had been re-plumbed), new flooring throughout, new kitchen, new M bathroom, updating 2nd bath. Full face lift. We're projecting this will take about $60-70k.

Kitchen Before