Basicly a Turn Key Buy and Hold

[Preston Roper]

Investment Info:

Single-family residence buy & hold investment in Midlothian.

Purchase price: $120,000
Cash invested: $28,000

This was my first buy and hold investment that i never lived in.

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

I was a eager investor and was looking for just about anything to invest into. I liked the area and the houses where not expensive but the rents where high for the prices of the homes.

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

I found it through a whole seller. The was advertising it as a buy and hold with tenant in place.

How did you finance this deal?

I financed it with a conventional loan.

How did you add value to the deal?

Since there was a tenant in place and he was okay with staying i did very few renovations. We updated the stairs that went to the house and then added a new balcony door. that was about it.

What was the outcome?

The tenant is still in place and is a very low maintenance tenant. the Cash on Cash ROI is at 17%.

Lessons learned? Challenges?

The biggest thing that i found on this was that keeping a good tenant in place is worth keeping the rents low. I could raise the rent by maybe $75 to $100 but i dont think that the current tenant would stay. He has never been late on a payment and when something comes up he just fixes it.