Springville buy and hold 2016

[Amy Kendall]

Investment Info:

Single-family residence buy & hold investment in Springville.

Purchase price: $200,000
Cash invested: $20,000

This property is a very large twin home that was one of our first purchases we made after deciding to really go all in on rental properties. At this time, saving for the down payment was our biggest holdup and we used a 10% down payment loan from MACU to get into this property. The cash on cash return for this property is probably the highest we have seen while investing here in Utah. The same renters have been in this property since we bought it and it has been a great property for us.

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

We were really excited to start adding to our portfolio at the time and this property fit all our criteria.

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

We found it on the MLS. The sellers wanted a little more for it, and we initially lost the bid to another buyer. Then, a week later, the agent called us to see if we were still interested and they accepted our original offer.

How did you finance this deal?

We used a 10% down payment loan through Mountain America Credit Union, which really helped us out because our limiting factor at the time was coming up with money for the down payments on properties.

How did you add value to the deal?

We painted the cabinets and finished a bathroom in the basement. The furnace went out a week after closing on this property, which gave us some concern, but it worked out and has been a great rental.

What was the outcome?

We are still holding onto this unit and recently refinanced the loan.

Lessons learned? Challenges?

This one gave us a few problems right out of the gate with that furnace and a few other little things, but we stuck with it and have some great equity built up with steady cash flow.