All Forum Posts by: Cory Kline

A silver lining thus far is that I purchased the house at $420k. I took the average of three sites estimates on the value of the house and it comes out to $431,433. Hopefully it will continue to go up rapidly and I can turn it for a bit of a profit then find a legit deal that will give me a higher cash on cash ROI.

I really appreciate the comments.  Thank you all. 

@ Andres A. - Rent will just cover PITI.

@ Scott Wolf - That's what I'm hoping for.  Seems real estate is doing well in the area and continuing to go up.  Experience is a hell of a teacher! 

@ Scott Wolf - you are absolutely correct. The cash on cash ROI is going to be between 2-4%. Unfortunately I did not think this one through as well as I should have. And it will be an expensive mistake, one that I'll never make again, that is for sure!

@Derrick E-Looking to get between $2500-$2700

@Adrian Chu-My closing date is 28 Feb.  Took about 3 weeks in total to close.  Sorry for the confusion.  

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $420,000
Cash invested: $93,000

First deal. I've learned a lot with this one and would do a lot of things differently if I had to do it again.

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

Looking to build a portfolio of single family rentals in my area.

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

This is a neighbor. He told me they were going to sell and move out of state. I made him an offer and we went through a title company. No agents involved.

How did you finance this deal?

We put down about 23% and took a loan for the rest.

How did you add value to the deal?

Value added by not involving an agent.

What was the outcome?

Closing in 2 days.

Lessons learned? Challenges?

I would have done more research on all of the little extra fees involved with going through a title company. I also would have offered less for the buying price even though the house is in excellent condition and move in ready.