SFH Buy and Hold - Lexington KY

[Emily Beatty]

Investment Info:

Single-family residence buy & hold investment in Lexington.

Purchase price: $212,000
Cash invested: $53,000

Single Family Home near University of Kentucky. Made a few updates and got this property temp rented for 6 months. Raised rent around $200.00 a month pre-leased to students for the 2020-21 school year. This was a low-key BRRRR - 15K in renovation work added 60K in equity (ARV is now 290K). Cash-out refinanced at a lower interest rate and got all our renovation money back, plus holding costs (20K total cash-out) and was still able to lower the monthly payments.

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

Student rental income in the area

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

ran into it looking at another deal on the MLS. Had been sitting on the market for a while. Seller was motivated.

How did you finance this deal?

Commercial Loan initially, did a cash out refinance 6 months later at a lower interest rate

How did you add value to the deal?

Cosmetic renovation, renting to students

What was the outcome?

We have an updated property that cash flows 400 a month

Lessons learned? Challenges?

Took a while to get on the schedule of the school year. Had to temp rent the place for 6 months at a lower monthly rate than I would have been able to with students. Bought during the wrong time of year.

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

Julie Begley - Realtor with Berkshire Hathaway Lexington
Amy Sherrow - People's Exchange Bank