SOLD Single-Family Investment

[Marcus Flores]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $105,000
Cash invested: $23,000
Sale price: $155,000

3 Bedroom, 2 Bathroom with 2 Car Garage, and 1700 sqft.

Current NOI is $1500 a month. Recently renovated. Full Kitchen and Bathroom remodel.

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

This property was offered at a substantial discount and was a fantastic opportunity to jump-start my journey into real estate investing.

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

This was an off-market deal that was brought to me by a local agent. Due to the nature of the deal being an off-market cash deal and from a wholesaler, negotiations were slim and quick.

How did you finance this deal?

I financed the deal with my own capital and purchased the property all cash.

How did you add value to the deal?

Renovated the property extensively. Added new luxury vinyl planking throughout most of the property, adding new cabinets and granite countertops in the kitchen, updated backsplash and light fixtures, and installed new stainless steel appliances. Updated both bathrooms with new vanities and light fixtures, as well as adding to-ceiling tile in both showers. Also installed brand new garage doors for the attached 2 car garage.

What was the outcome?

The property was occupied with tenants from September of 2019 through September of 2020 and rented for $1500 a month. After property taxes, insurance, and 13% for repairs and capital expenditures, the property produced a substantial cash flow. The property was then sold in December of 2020 for $155,000.

Lessons learned? Challenges?

1.) In order to achieve financial success in the world of real estate investing it is absolutely essential to have a team of professionals around you that are familiar with the mechanics of the market you're investing in, as well as the risk associated with each investment.
2.) When performing your due diligence and analysis on a potential deal always factor in a solid exit strategy, especially on deals that involve a substantial amount of equity.
3.) Vent Contractors thoroughly.

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

Matt Moreland