Equity Play with Buy & Hold

[Hannah McArthur]

Investment Info:

Townhouse buy & hold investment in Huntsville.

Purchase price: $198,412
Cash invested: $6,000

New Build Town Home. Equity play, using Buy & Hold

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

I rented this town home when I was in college. When the owner decided to sell, I offered to buy.

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

From living there previously, and knowing the owner.

How did you finance this deal?

30 year fixed, nothing down. I asked the owner to pay the down payment for me but also increased the total price paid for the home by that same amount.

How did you add value to the deal?

By putting no personal money into it.

What was the outcome?

YTD over 20K of equity from renters, and market value range is 280K-300K so total equity is 120K in five years time.

Lessons learned? Challenges?

You can negotiate deals that are not conventional that work out for both the buyer and the seller.