Rental # 2 in partnership

[Mehul Patel]

Investment Info:

Other buy & hold investment in South Elgin.

Purchase price: $188,000
Cash invested: $55,000

Duplex with 3 bedrooms, 1.5 bath, 2 car garage.

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

This property is similar to my started home which is also a rental. Low maintenance.

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

MLS

How did you finance this deal?

Partnered with two other investors. Paid down payment and some small rehab costs with cash. The rest is borrowed on a 30-yr fixed loan.

How did you add value to the deal?

Updated the shower, new toilets, new electrical outlets, garbage disposal, smart thermostat.

What was the outcome?

After the closing, spent three weeks to rehab while listed on MLS for rent. Within a week, we had a tenant lined up.

Lessons learned? Challenges?

Having a pre-approval to finance the deal helped us get ahead of others. Could have better to line up contractors to perform the rehab work during COVID.

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

Yes