3rd Investment Property - Mississippi

[Ulisses B.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $80,000
Cash invested: $18,000

This was my 3rd investment property that I purchased. Roughly 9 blocks away from the University of Southern Miss (where Brett Favre played in college). One of my better investments, since it was such a turnkey property. This rental was a Section 8 home where I payed for the water/garbage. My mortgage was $539 and i charged $1,025 a month. However, due to the water usage, i was paying almost $125 a month in water expenses (Cash flow: $361) I re-negotiated the lease and lowered the Rent to $950 and got away from paying the utilities.

Current cashflow: $419

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

Turnkey approach, low cost, and rental rates in the area.

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

Trulia. due to the market and how fast properties were going I was okay with paying what the owners were asking for.

How did you finance this deal?

Loan - 20% down