SFH - Company rental

[Pete Krentz]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $163,000
Cash invested: $32,600
Sale price: $199,000

SFH - Splity foyer - 4bed 2 bath 3 stall garage.

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

The house was already rented to a telecommunications construction company that paid a higher rent for the flexibility of adjusting tenants they had in the area. The company paid and handled everything.

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

MLS - I negotiated on my own as I was a realtor at time.

How did you finance this deal?

Conventional loan

What was the outcome?

I made an okay profit on the sale but the real value was the easy cashflow of $500/month. I never had to deal with the tenants as the company held the lease and moved tenants in and out. All I did for the entirety of possession was collect a check.

Lessons learned? Challenges?

Company leases can take away some serious headaches as far as tenant management. I could tell them about an issues (incredibly rare) and their HR department would handle it immediately.

A company may pay a higher rent for the flexibility of moving their employees in/out at will.

Challenges - I wasn't always aware when a new tenant would move in/out.