Single Family Rental In Homewood IL

[Tony Triggiano]

Investment Info:

Single-family residence buy & hold investment in Chicago.

Purchase price: $117,000
Cash invested: $7,000

I purchased this single family home in the summer of 2019 and have been directly managing it as owner/manager for the last year. Outside of some repairs to the home has generated positive cash flow of roughly $250/month.

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

The low cash down offered by the lender in conjunction with the stable neighborhood made it an attractive investment. I was looking for a starter property where not a lot of cash was at stake and I could potentially make some mistakes while not losing a fortune.

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

It was found on-market on Redfin and it was negotiated with a broker from EXP Realty.

How did you finance this deal?

I used a low money down conventional mortgage.

How did you add value to the deal?

Our value add was fairly minimal. We painted and did some landscaping and manage the rental directly.

What was the outcome?

Except for an unlucky issue with the main sewer line which was unforeseen at closing the investment has been positive, generating about $250/month in free cash flow.

Lessons learned? Challenges?

Scope the main sewer line in your inspection, do not solely rely on the referrals of brokers and mortgage lenders rather inspect the work of others closely. One bad referral can lead to multiple bad referrals and chances are one of those bad referrals will have a negative impact on your investment somewhere along the line.

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

Yes, a real estate agent. No - be careful and patient in selecting your agent. A lot of agents are impatient with buyers and pressure them into buying something.