1st SFH slow cash flow after 5 months of patience.

[Whitney Robert Caldwell]

Investment Info:

Townhouse buy & hold investment in Middle River.

Purchase price: $176,750
Cash invested: $26,512

4016 Issacs Rd is a townhouse in Middle River, MD 21220. This 1,485 square foot townhouse sits on a 1,503 square foot lot and features 1.5 bathrooms. 4016 Issacs Rd was built in 1986

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

Interested in a SFH in a safe neighborhood with a community feel. The newly renovated roof and the minimal amount of repairs needed was acceptable.

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

I found this deal by searching online with Zillow.com, Realtor.com and Redfin.com

How did you finance this deal?

I received 15% financing from Keller Mortgage.

How did you add value to the deal?

I've added value to the home by making $8000 repairs in appliances, cap ex, electrical repairs and cleaning.

What was the outcome?

I think that I underestimated the repairs needed to bring this property up to code for Sec-8 tenant. Also I over estimated the amount of rent (i.e $1800/month) that would be usual and customary ($1600) for this are of Baltimore County. The outcome is that I am missing out on about $150 from my monthly cashflow.

Lessons learned? Challenges?

The house I should be seeking will sell at a lower price point (i.e. $155K-165K) and rent for about $1650 per month. Obeying the 1% rule more closely and providing 10-12% CoC RoI for my investment

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

William Bowman (Keller Williams)