This was our 2nd investment

[Henry Paschall]

Investment Info:

Single-family residence buy & hold investment in West Plains.

Purchase price: $329,000
Cash invested: $32,900

We purchased 6 single family homes on 1 street. I would have to say that our biggest help in this purchase was our lender Wood & Houston Bank in West Plains, Mo they are great! This property has some growing pains involved, we had to do a lot of repairs and we inherited some awful tenants so we took a big loss on these properties so far. But we put things in place to turn these properties around and learned how to do evictions. This year will hopefully be a profitable year with about 500.00 a month so far.

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

We were looking for a multi family 2-4 doors.

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

We actually were looking for a duplex but our realtor had a contractor that just built these 6 2Br 1.5Ba homes that are right next to each other in our price range. Our agent was very good and used her resources to find us the best fit for our money, but the contractor just slapped these homes together with builder grade materials that we have now almost remodeled almost all the homes with better materials. We should have had a 3rd party take a look at these homes before purchasing them.

How did you finance this deal?

Commercial Loan with Wood & Houston

How did you add value to the deal?

They were poorly managed properties with builder grade material. So we upgraded the units as tenants moved out.

What was the outcome?

Have not made a profit on these properties yet but hopefully at the end of this year maybe next year we will be profiting $200 a door.

Lessons learned? Challenges?

Have a 3rd party look at the home before you purchase. This could be a home inspector or your family.
Don't take over tenants if you don't have too, we didn't even look at having the previous owner get rid of the tenants.

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

Pamela Cochran of Century 21 Ozark Hills Realty