All Forum Posts by: Fiona Humphrey

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $275,000

Cash invested: $60,000

Long term rental to a home for developmentally challenged adults.

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

The cash flow is what attracted me to the deal. After researching the renter, I found they had a solid history of county licenses for the business and there were ongoing in-home checks through the county to ensure that the living conditions were in good order. I saw this as a positive indicator that the renter is invested in maintaining the condition of the property.

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

I found it with my realtor through the MLS and was the first to submit an offer. It was attractive to the seller to accept without having had the listing published more than 1 day.

How did you finance this deal?

Conventional financing with 25% down. 

What was the outcome?

Closed in one month and have had very few issues to date.

Hi @Melinda Vaughn, I just now looked back at this conversation. As a matter of fact, I closed in September and so far it is going well. There are a few concerns that made me question going through with it, but I have a few contingencies for backup if anything goes wrong. I'd love to hear some of your experiences if you ever have the time.

Hi Shea,

It is a residential property and, yes, my strategy is buy and hold. My goal is collect income from the property and I expect the value of the property to rise as well over the next few years.

Hi, 

I am in negotiations to purchase a property in Sacramento, CA which has an existing lease with a Residential Care Facility. The price and the rental income are good. I have looked up the license of the business with the state and they are in good standing with only small violations in the past (fixed in a timely manner). This will be my first pure investment purchase, my experience up to now has involved house hacking. That was what I thought I would do again, but then I came across this deal. I will have to scramble some to come up with a bigger down payment than I expected and that is making me a little nervous. Does anyone have any experience with these types of tenants? Have any advice? I am researching myself, but want to leave my question open ended to see if something is brought up that I have not thought of. I appreciate any assistance with this matter. 

Thanks for all the replies. I have a friend moving to KC soon whose friend currently rents the property in question and was offered the sale price by the owner. He doesn't have the funds himself and passed on the information to my friend. I have been researching the area and am holding off on making any decisions till my friend moves to the area and can give more details. I am definitely leery of such a low priced property in a questionable area and wouldn't consider it if it was just an advertisement. I appreciate the advise and may reach out more in the future. Thanks!

Thanks! @Jeff Filali

Hello, I may have a deal in Missouri for under 10k. Not sure of all the details yet, but if it all works out I am wondering about what I need to complete the transaction in MO. For a cash purchase without RE agents, do I need a lawyer or a title company? Any advise on the rules/ requirements for Missouri would be helpful. 

Thanks!

Is this property still available? If so, please email details at [email protected].

I am interested in attending as well.

Hi,

I am just starting out and am trying to get past the research step and move on to the "just do it" stage. I have already gained some valuable information from this site and hope to continue to do so.