Single Family Buy and Hold

[Heath Shepard]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $325,000
Cash invested: $66,000
Sale price: $343,900

This property is in a great, highly desirable neighborhood but the previous owners did very little maintenance so it was definitely the worst house in the best neighborhood type of situation.

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

The neighborhood and location and that there was definitely a lot of opportunity for sweat equity.

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

A friend of mine who owns a large property management company in the San Antonio area found it for me.

How did you finance this deal?

So because I was going to be living in this property for a couple of years while my wife and I built a house I was able to get a 30yr fixed FHA with USAA.

How did you add value to the deal?

I completely repainted the interior of the house including all cabinets. Next on the list is exterior paint, wood repair, new roof due to a hail storm... and landscaping.

What was the outcome?

Its still a work in progress but the idea is to rent this house out forever because of the amazing loan that I have on it. I will probably refinance it at some point and pull out my equity in order to reinvest in other rental properties.

Lessons learned? Challenges?

I wish I would have taken a closer look at the condition of the house and asked more questions. I didn't realize how rotten some of the window trim and facia was.

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

I did. I had an agent who owns Red Wagon Properties here in San Antonio. He deals primarily with real estate investors in this area as a result of managing over 400 properties in this area.