The Woodlawn Single Family Rental

[Thomas Magill]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $64,000
Cash invested: $55,000

This is a single family rental property I purchased from a friend of mine. It was a full gut renovation and was in the worst condition I've seen to date.

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

I wanted to get into the single family rental market and the numbers were close on this property if I left money in the deal.

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

A friend of mine sent me this deal after I lost it to them from a wholesaler. So, I ended up having to pay 5K more than I originally anticipated.

How did you finance this deal?

I financed this deal through a private money lender and will be refi'ng their money out shortly.

How did you add value to the deal?

This was a full renovation. The property was in really bad shape and needed a lot of love. New plumbing, electrical, HVAC etc.

What was the outcome?

The property's renovation is complete and it is rented by some great people.

Lessons learned? Challenges?

The lesson I learned on this property came during the initial analysis. I had tunnel vision when it came to cash flow. If a property didn't fit in the nice little cash flow box, I wouldn't do it. But, after looking at it again, I realized if I left some money in the deal during refi, I could cash flow the property. I would chalk it up to money I wasn't going to need in the near term so eventually made sense.

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

Not really, I would recommend my private money lender, but I'm not sure if he'd want that.