Sold Single Family Rental

[Marcus Flores]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $82,000
Cash invested: $23,400
Sale price: $110,000

Single-Family Rental purchased in July of 2019.

3 Bedroom, 2 Bath, 1178 sqft, 2 Car Garage.

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

I was originally interested in this deal because of everything the seller had to offer, making the property a feasible investment. From a new HVAC and roof to seller financing, without these contingencies, the property would not have performed very well.

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

This deal was brought to me by my local agent. We negotiated a Seller Financing agreement which allowed me to put 20% down and included a 5-year term structure. The seller also included a new HVAC, Roof, and Fence while under contract.

How did you finance this deal?

Seller Financing: 5-year term, 20% down, 5% interest rate, with a balloon payment at the end of the loan term.

How did you add value to the deal?

Added new LVP throughout the main living area and kitchen, painted the entire interior and updated the garage.

What was the outcome?

The property was rented for 1 year at $1000/month. Unfortunately ran into multiple plumbing and mechanical issues throughout the year which really dragged down cash flow and potential profits. Decided to sell the property after tenants moved out.

Lessons learned? Challenges?

Learned to work through various mechanical issues that an older property like this will likely have. Plumbing being the main source of those issues throughout the year.