Lincoln, NE Buy and Hold Townhome

[Jared Sveen]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $110,000
Cash invested: $5,000

3 Bed 2 Bath Townhouse in Southeast Lincoln, NE

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

The townhouse is in a great area of Lincoln where rents are typically higher on average.

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

Found the deal through a lead that I've been working on for two years to buy his portfolio. He wanted to partner up to buy this townhouse because he knew the owner wanted to sell but then he decided to let me run with it since he doesn't need any more properties to manage. Negotiated the deal by giving the owner a call and asking him what he wanted then asked for a 20% discount on the price and settled on a number that worked for both of us roughly 10% off ask price.

How did you finance this deal?

Cash deal that was later refinanced out.

How did you add value to the deal?

Put on a new roof that increased the curb appeal and that was it.

What was the outcome?

Cash flowing about $1,000 per month with an asset that has roughly 65-80k in built in equity.

Lessons learned? Challenges?

That townhouses with HOAs can be cash flowing properties. I always wrote off town homes as being not feasible investments as the HOAs would cause issues and cost too much. Now it's my best cash flowing asset and is headache free (so far) with the snow/lawn/garbage all being handled by the HOA. There were some challenges in dealing with the seller as he had some substance abuse problems that he was still recovering from but overall not too many issues overall.

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

West Gate Bank in Lincoln NE helped out with the Refinance.