SFH with tenants in place

[Billy Daniel]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $42,000
Cash invested: $13,000

650 sq ft SFH with tenants in place at time of purchase. After several minor improvements, we were able to increase the rent 10% to almost make it to market value. This one was basically an impulse buy....

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

MLS and negotiated through a realtor (my wife).

How did you finance this deal?

Commercial loan with 20% down

How did you add value to the deal?

Repaired leaky roof, repaired leaky plumbing, installed smoke/carbon monoxide detector, fixed gas range, leveled carport

What was the outcome?

Very good cash flow for a property this size with a loan on it!

Lessons learned? Challenges?

Strong due diligence can uncover some awesome gems from what is advertised. In this case, the previous owner was marketing this with rent $100 less than actual (no idea why). We uncovered this when speaking with the property mgmt company. No idea if the seller ever realized it.

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

My wife is a realtor, so of course!!